Cost segregation is a tax strategy that allows businesses to depreciate certain assets over a shorter period of time than the standard 27.5 years. This can save businesses significant amounts of money on their taxes.

There are two main types of assets that are eligible for cost segregation:

• Tangible personal property (PP&E): This includes items such as furniture, fixtures, and equipment.
• Land improvements: This includes items such as parking lots, driveways, and landscaping.

To qualify for cost segregation, the assets must be:

• Tangible
• Used in the active conduct of a trade or business
• Not land

Once an asset has been identified as eligible for cost segregation, it is assigned a cost basis and a depreciation schedule. The cost basis is the original cost of the asset, and the depreciation schedule is the number of years over which the asset will be depreciated.

The amount of tax savings that a business can realize from cost segregation will vary depending on the type of assets that are eligible and the length of the depreciation schedule. However, in many cases, businesses can save tens of thousands of dollars on their taxes.

If you are a business owner, you should consider cost segregation as a way to save money on your taxes. Cost segregation is a complex process, so it is important to work with a qualified tax advisor to ensure that you are taking full advantage of this tax savings opportunity.

Here are some of the benefits of cost segregation:

• Increased cash flow: By depreciating assets over a shorter period of time, businesses can free up cash that can be used for other purposes, such as expansion or investment.
• Reduced tax liability: Cost segregation can help businesses to reduce their tax liability, which can save them money in the long run.
• Increased asset value: Cost segregation can increase the value of a business's assets, which can make it more attractive to potential buyers or investors.



If you are a business owner, you should consider cost segregation as a way to save money on your taxes and increase your cash flow. Cost segregation is a complex process, so it is important to work with our office to ensure that you are taking full advantage of this tax savings opportunity.