Build Wealth Smarter, Not Slower!

September 25, 2025•3 min read

Cost segregation is introduced as a powerful tax strategy for real estate investors, allowing them to accelerate depreciation on certain property components and reduce their taxable income. R. Kenner French explains the concept with humor, comparing his own “short-term value depreciation” to his wife’s “long-term value,” to show how the IRS permits faster write-offs on assets that lose value quickly. This acceleration can mean significant tax savings, often described as “free money from the government,” when used correctly.

Kenner highlights Vast Solutions Group’s long history, dating back to 1969, and its integration of artificial intelligence into tax and financial planning. Their proprietary AI platform, Einstein, enhances efficiency, accuracy, and accessibility in cost segregation studies and bonus depreciation projects. This technology helps identify depreciable assets more quickly and reduces fees compared to traditional methods, giving investors a competitive edge in their tax planning.

Custom HTML/CSS/JAVASCRIPT

The presentation emphasizes that cost segregation should not be done in isolation but as part of a broader tax strategy. Mistakes such as improper asset classification, poor documentation, or outdated methodologies can trigger audits or reduce the effectiveness of the study. He stresses the importance of choosing an experienced advisor with a proven track record, industry specialization, and the ability to provide ongoing support—especially for investors acquiring properties regularly.

Looking ahead, Kenner notes that the future of cost segregation will be shaped by technological advancements, collaboration among specialists, and changing tax policies. Compliance challenges will continue, but AI and other innovations are improving how studies are conducted. He underscores that taxes are often the largest expense for investors, making proactive planning—rather than reactive filing—critical to financial success.

In conclusion, Kenner frames cost segregation as a strategic, proactive tool that can significantly improve financial performance when applied correctly. He reinforces the company’s mission: to combine tax, finance, and artificial intelligence in order to lower entrepreneurs’ tax liabilities and provide long-term planning advantages.

Takeaways

• Cost segregation studies can significantly lower tax liabilities for real estate investors.

• Understanding depreciation is crucial for maximizing tax benefits.

• Proactive tax planning is essential to avoid unexpected liabilities.

• Choosing the right cost segregation advisor can impact financial outcomes.

• Artificial intelligence is transforming tax planning and cost segregation processes.

• Residential investors can also benefit from cost segregation strategies.

• Documentation and proper asset classification are vital for successful cost segregation.

• Tax policies and compliance requirements are constantly evolving.

• Cost segregation should be integrated into an overall tax strategy.

• Investors should be aware of potential pitfalls in cost segregation studies.

Sound Bites