Triple Up Savings With Cost Segregation

When purchasing commercial property, savvy investors know that cost segregation can unlock large income tax savings.

For this project, the total building cost basis was $1.9 million between the 3 buildings.  There were minimal five-year components to accelerate depreciation inside the buildings. The real opportunity lay in the parking lot as a 15 year asset.  With a value exceeding $200,000, the lot proved to be a goldmine for accelerated depreciation, leading to nearly $90,000 income tax savings for the property owner.

Why Cost Segregation Works ~ More than a Tax Break

Cost segregation allows commercial property owners to break down components into shorter-lived assets instead of the standard 39-year depreciation schedule. These savings reduce taxable income and free up capital to reinvest in the business. 

If you’re a commercial property owner, contact us to see if a cost segregation study can identify untapped depreciation opportunities. Even if your building is mostly a shell, as we saw with this property, infrastructure assets like a massive parking lot can still deliver impressive tax savings. All we need is an address to get started for a free estimate!