Cost Segregation
Cost segregation identifies building components that are eligible for accelerated depreciation. Most buildings are depreciated for tax purposes over 39 years. By identifying, calculating and classifying costs to shorter tax lives of 5, 7 or 15 years, at accelerated rates, owners are able to increase tax deductions in the early years, when cash flows are most critical. Many of these shorter-lived assets are eligible for federal bonus depreciation as well, creating even more savings.