Benefits of Cost Segregation

Accelerated Depreciation

Cost segregation allows property owners to accelerate depreciation deductions by reclassifying components of a property into shorter IRS-approved recovery periods.

Improved Cash Flow

By accelerating depreciation, you reduce taxable income earlier, which can free up cash that would otherwise be paid in taxes—giving you liquidity sooner for reinvestment or operations.

Reduced Tax Liability

Increasing depreciation deductions in earlier years directly lowers your taxable income, which can reduce federal and state income tax liability.

Eligibility for Bonus Depreciation

Assets identified in a cost segregation study that qualify under IRS rules may be eligible for bonus depreciation, allowing even larger deductions in the first year.

Higher Return on Investment

The combination of accelerated deductions, reduced tax paid early, and improved cash flow often yields a higher overall return on your property investment compared to traditional straight-line depreciation.

Tax Deferral Advantage

Rather than waiting decades to realize full depreciation benefits, cost segregation brings forward substantial tax savings, giving property owners the time-value advantage of using the cash sooner