Commercial Property Owners
Commercial property owners, inspectors, and investors are encouraged to have cost segregation studies performed on their buildings in order to improve their federal tax credit savings, and increase their cash flow. The study is beneficial for almost any commercial building that has been constructed, acquired, or renovated and is done to identify building systems and components that qualify for accelerated deductions.
Commercial building properties are typically depreciated over 39 years. However, certain building components and systems including electrical installations, plumbing, and mechanical systems may qualify for a shorter depreciation period of 5, 7, or 15 years.
The Tax Cuts and Jobs Act of 2017 has had a positive effect on cross segregation studies, and our team of tax experts are now able to immediately write-off property depreciated under 20 years.
Qualifying for cost segregation
- The building itself, or improvements to a building were placed into service after 1987
- The construction or improvements have a cost basis of $150,000 or more
- The building must be kept within the owner’s possession for at least 3 more years
All commercial building owners are encouraged to have a cost segregation study done on their property.