What is Cost Segregation?
Cost segregation is one of the most valuable profit strategies utilized by owners of commercial real estate. Simply put, these studies segregate the cost of an asset into different buckets, each with their own unique depreciation schedule. The useful life of a building is complex – carpet wears out and needs replacing long before windows, and the HVAC will age differently than the concrete in the parking lot. But without a cost segregation study, the entire property depreciates at the same rate.