What is Cost Segregation?
Cost Segregation is the analysis of commercial construction in the effort to segregate real property from personal property, in order to accelerate depreciation deductions.
Who can benefit from a Cost Segregation Study?
Any for profit organization that is designing, building, purchasing or renovating a commercial facility. Generally the more customized the building, the greater the tax benefit that can be derived.
What is the benefit of Cost Segregation?
By segregating the cost of construction as personal property, depreciable lives can be decreased from 39 years to a lower asset life, such as 15 or 7. Accelerating depreciation saves taxes and increases current cash flow.
When is a Cost Segregation study performed?
Generally a cost segregation study can be performed in three ways:
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