Cost segregation is the process of analyzing costs incurred in conjunction with the initial construction or major improvement of a building and separating these costs into asset classes that will result in shorter tax lives. By shortening the tax lives you will be able to write off your investment more quickly which will result in lower taxable income, less current tax and more cash in your pocket today. If you are considering embarking on a real estate purchase or major expansion, it would be in your best interest to at least consider the benefit of a cost segregation study.
