depreciation deduction in early years of ownership.
Who Benefits from Cost Segregation Studies?
Cost Segregation Studies benefit almost everyone who owns Income-Producing Property: facilities such as manufacturing plants, industrial parks, research labs, financial institutions, office buildings, hotels & restaurants, retail stores, apartment complexes, shopping centers and even agricultural property.
Cost Segregation analyzes property costs to segregate allowable short life assets from longer life Real Property costs. It’s an IRS-approved method of reclassifying certain components and improvements of a commercial building from real to personal property. This process allows the assets to be depreciated on a five-, seven- or 15-year schedule instead of the traditional 27.5- or 39-year depreciation schedule of real property.
Examples of Savings Provided through Cost Segregation Studies*
*Savings vary by industry