Commercial real estate owners look at a building as one major investment, but a closer examination can reveal many separate components inside that property. A cost segregation analysis focuses on identifying those components and assigning them to depreciation categories. This can give owners and their tax professionals a clearer picture of how depreciation may apply across an income producing property.
A commercial building may include structural elements along with flooring, lighting, electrical installations, plumbing, equipment, parking improvements, landscaping, and features. These assets can serve different purposes and may fall into different recovery periods. Examining them separately is the central idea behind cost segregation for real estate.
The process generally starts with gathering property information. https://www.costsegregationirs.com/
