Cost Segregation Providers

Kim Lochridge

Service Locations: United States.

What is Cost Segregation?

A cost segregation study is a federal income tax tool that increases your near-term cash flow by deferring taxes.

With a cost segregation analysis, you could be able to write off up to 30-35% of your building’s original purchase price in the first year!

Because depreciation occurs when a purchased building ages, it loses value over time. Actually, your building is not only one piece of property, but comprised of subcomponents (such as lighting fixtures, heating and air conditioning systems, and other components that deteriorate over time).

But unlike the whole of a building, which is seen as having either 27.5- or 39-year lifespan, subcomponents are granted a five- or 15-year lifespan, making the depreciation deduction larger, especially in the first several years. Consequently, whether your property is residential or commercial, you can write off that cost either in a 27.5- or 39-year timeframe.