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Fundamento

Cost segregation — accelerate depreciation

A cost segregation study reclassifies parts of a property (carpet, fixtures, parking lot, landscaping) into 5-, 7-, or 15-year depreciation buckets instead of the default 27.5 or 39 years — front-loading deductions to the early years of ownership.

On a $500K building, a typical cost seg study reclassifies 20–30% of the value into shorter-life buckets. That can mean an extra $30K–$60K of depreciation deductions in year 1 — worth $10K–$25K in tax savings at high marginal rates.

Study cost: typically $3K–$10K depending on property size. Worth it if you're in a 30%+ marginal bracket and the property is over $500K. Some firms offer "DIY" cost seg software for smaller properties for $1K–$2K.

Trade-off: accelerated depreciation means a bigger depreciation recapture bill when you sell — so the benefit is partly a timing arbitrage, not a permanent tax savings. Most powerful when combined with a 1031 exit (no recapture due) or hold-to-death (no recapture for heirs).

#cost segregation#depreciation#bonus depreciation

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