Cost Segregation

Grow Your Income. Depreciate Your Equipment.

Cost Segregation Studies: An IRS-approved strategy allowing the reclassification of personal property assets from those of Real Property assets in an effort to shorten depreciation time. Established in 1997, it can help minimize taxable obligations within a business by accelerating depreciation expenses.

In English: Cost Segregation, also known as Cost Seg, can help you free up otherwise allocated taxable funds for a variety of other purposes.

Your commercial property may have Real Property assets capable of a 5 year depreciation, versus the traditional 39 year method (or 27.5 if commercial residential property). Other options include 5, 7, and 15 year depreciation rates. A cost segregation study can identify those areas best suited to a reclassification, as well as potential savings resulting from such changes. Investors and property owners alike are pursuing cost seg as a means to minimize certain tax expenditures and increase cash flow. Put the time value of money to work for you!