Cost segregation employs a strategic tax planning tool that allows you to increase cash flow by accelerating your federal and state income tax depreciation deductions on real estate you have purchased, constructed, expanded, or remodeled. This includes landlord or tenant improvements.

Conducted by our team of accountants and engineers, a Cost Segregation Study identifies, segregates, and re-classifies all building costs that qualify for short depreciable lives. Many costs that were originally classified in residential or commercial real property categories, with a required depreciable life of 27.5 or 39 years, can be re-classified into personal property or land improvement categories with shorter depreciable lives of 5, 7, or 15 years.

Accelerated depreciation methods may amplify the depreciation deduction of the re-classified costs.