Cost Segregation Analysis – Studies
The concept of cost segregation analysis is important to owners of office buildings, retail properties, industrial buildings, apartments, storage facilities, motels, and hotels.
Cost segregation studies identify certain qualifying assets in order to shorten the depreciation times for tax reporting purposes. This has the direct effect of reducing an owner's state and federal tax liabilities.
The law permitting owners to reclassify qualifying assets was signed into law in 2017 by the president. Owners of income producing real estate should consult with their CPA or contact the American Society of Cost Segregation Professionals to learn more about this valuable financial tool.