Use a cost segregation study to accelerate deductions
Abstract: For those who have recently purchased or built a new building, or even substantially remodeled an existing building that they own, faster write-offs are only a cost segregation study away. A cost segregation study identifies property components and their cost, allowing owners to maximize their current depreciation deductions by using the shorter lives and faster depreciation rates available for the qualifying parts of the property. But the overall benefit may be limited in certain circumstances. This article explores some of the details, while a sidebar addresses the concern some have as to whether a cost segregation study might trigger an audit.