The best candidates usually have meaningful building basis and sufficient taxable income.
Documentation quality matters because the study may be reviewed later.
Depreciation benefits should be modeled with recapture and long-term plans in mind.
What the strategy does
Cost segregation separates building components into asset classes with different recovery periods. The result can be faster depreciation deductions compared with treating the entire property as one long-lived building asset.
When it may be worth reviewing
The review is usually strongest when the property basis is material, the owner has taxable income to offset, and the building includes components that can be clearly identified and documented. The decision should include cash flow, future sale plans, and compliance cost.
What to prepare
Useful files include closing statements, construction invoices, depreciation schedules, improvement records, and prior returns. Better records make the study more useful and easier to defend.
Want this reviewed for your numbers?
Submit the assessment form and Vertex Tax Advisory can review your facts, documents, and next-step options before you make a tax decision.
Start Free Assessment