Cost Segregation is a tax-saving strategy that allows property owners to accelerate depreciation on components of a building. This leads to larger upfront tax deductions, improving cash flow. Typically, buildings are depreciated over 27.5 to 39 years, but with cost segregation, certain elements like fixtures, landscaping, or flooring can be depreciated over 5, 7, or 15 years. 

Cost Segregation helps property owners accelerate depreciation, leading to larger tax deductions earlier in a property’s life. This can significantly improve cash flow, providing additional funds for reinvestment or operational costs. It’s particularly beneficial for reducing tax liability on newly acquired or constructed properties, but it can also help existing properties through catch-up adjustments. 

When conducted properly by qualified professionals, Cost Segregation Studies are compliant with IRS guidelines and do not inherently increase audit risk.

Any income-generating property can benefit from Cost Segregation. This includes residential rental properties, commercial buildings, office spaces, industrial facilities, retail stores, and even specialized properties like car washes, gas stations, self-storage, or RV Parks. Essentially, if your property is used for business and incurs depreciation, it qualifies.