Cost Segregation Studies
Whether you are constructing a new building, have recently (i.e., in the last few years) purchased a building, or are rehabilitating an existing building, it will likely make sense to consider a cost segregation study.
This type of study is an engineering-based analysis of the cost components of a building to allow you to accelerate the depreciation on some components rather than depreciating them over the IRS stipulated 39 years. A study can be done for a property acquired in prior years. The cumulative change in the depreciation to date can be claimed in the year the study is done without amending any prior year returns.
