Cost Segregation Studies

As a commercial property owner, you are probably depreciating the building over 39 years. Every year, you get to deduct 1/39th of the property’s value (excluding land) from your taxes. That’s a long time to wait to receive all the tax benefits. Fortunately, there may be a way to accelerate the deductions and reduce the current year’s tax bill.

By conducting a “cost segregation study”, you can dramatically speed up the depreciation process. That’s because certain items that are part of the building may qualify for faster write-offs. Depending on the property, a cost segregation study takes a percentage of the cost out of 39 year depreciation and puts it into 5, 7, or 15 year depreciation recovery periods.

McDaniel & Associates can provide cost segregation studies for all types of properties. Please contact us to find out if your building qualifies for this tax break. With a cost segregation study, you can improve cash flow by reducing your tax bill the very next time you file a return!