WHAT IS COST SEGREGATION

What qualifies for cost segregation

Cost Segregation is a tax savings strategy utilized by businesses and individuals to increase cash flow. The strategy is designed to accelerate tax deductions for depreciation on real estate. In general, real estate is expensed over a period of 27.5 to 39 years. A Cost Segregation Study identifies individual components of the building structure. The components are then expensed over 5, 7, and 15 years. This reduction in expense recovery increases cash flow and reduces current income taxes. It is important for CPA’s to realize that new tax laws are now in effect for cost segregation. We can help guide you through those new laws to ensure that minimum quality standards for cost segregation are followed in a way that benefits your clients in the most effective way.

Any real estate structure that has been:

Purchased or constructed since 1986

Expanded, renovated, or remodeled

Improved for tenants since 1986  

17732 Highland road, suite G-114 Baton Rouge, LA 70810

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ADDITIONAL RESOURCE LINKS

COST SEGREGATION INITIATIVES IS A DIVISION OF:

What components qualify for shorter lives

Specialized fire protection systems

Sidewalk and curbing

Certain electrical/mechanical systems

Beams and columns

Decorative lighting or moldings

Communication systems

Redundant HVAC systems

Sewer and drainage systems

Wall coverings

Millwork

Floor coverings

Distribution panels and wiring

Computer data and power

Parking lots and curbing

Security access and monitoring systems

Vents and exhaust systems

Window treatments

Specialized air filtration

Signage

Landscaping, fencing, and outdoor lighting