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What is a Cost Segregation Study?

A cost segregation study is an engineering-based analysis identifying property components eligible for accelerated depreciation, reclassifying building assets from 39-year to 5, 7, or 15-year periods, allowing owners claim larger tax deductions upfront reducing current tax liability and increasing cash flow.

Comprehensive Definition and How It Works

  • Engineering-based analysis
  • Identifies depreciation components
  • Reclassifies building assets
  • 39-year to 5, 7, 15-year

Tax Benefits and Outcomes

  • Larger tax deductions upfront
  • Reduces current tax liability
  • Increases cash flow
  • Accelerated depreciation benefits

Cost segregation studies are engineering analyses identifying property components eligible for accelerated depreciation reclassifying assets reducing tax liability increasing cash flow.

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