Mike Adams-Internet Real Estate Marketing Pro

Cost segregation is a popular, yet misunderstood practice which provides owners of commercial property with powerful tax benefits. How? By “segregating” components and improvements on a commercial building from real property to personal property. Why is this so beneficial? Because it allows the owner to accelerate their depreciation from the typical 27.5 to 39 years to a 5, 7, or 15 year depreciation schedule. Thus the property owner realizes a reduction in taxable income with an increase in cash flow.