Cost Segregation: Accelerating Tax Savings

Commercial buildings are usually depreciated over 39 years, but you don’t always need to wait that long. A cost segregation study breaks property into faster categories:

• 🛠 Fixtures, cabinetry, lighting → 5–7 years

• 🌳 Landscaping, parking lots → 15 years

• 🏢 Structural property → 39 years

✅ The result: accelerated deductions, lower taxable income, and increased early cash flow.

📌 For business owners and investors, this means freeing up capital in the early years of ownership to reinvest and grow faster. But keep in mind: a formal study is typically required, and IRS scrutiny is possible if classifications are aggressive.

👉 Action: Ask your CPA whether a cost segregation study makes sense for your property.