Accelerating depreciation deductions – A cost segregation study may reduce taxes

Description

Abstract: Businesses that acquire, construct or substantially improve a building may want to consider a cost segregation study. These studies combine accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. The result may allow businesses to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. This article details how a cost segregation study works and includes a sidebar on how the PATH Act enhanced it.