Cost Segregation Study: Accelerate Your Property Depreciation
A cost segregation study is a valuable strategy for businesses that have purchased buildings or made significant leasehold improvements. This approach allows you to front-load years of depreciation, speeding up tax write-offs.
Key Benefits:
- Accelerated depreciation: Instead of depreciating improvements over 40 years, you can write off certain components much faster.
- Increased cash flow: Faster depreciation leads to lower taxable income in the short term.
How It Works: The study identifies building components that qualify for shorter depreciation periods. For example:
- Asphalt in parking lots
- Outlets for special use (such as, computers or specialized equipment)
While these may seem minor, the cumulative tax savings can be substantial over time.
Investment and Return:
- Typical cost: $5,000 to $20,000
- Potential return: Often multiple times the initial investment in current tax savings
Is It Right for You? Cost segregation studies aren’t suitable for every business. We recommend discussing your specific situation before making any financial commitments.
Contact Us: To explore whether a cost segregation study is right for your small business, reach out to our team:
