Unlocking Tax Savings: The Benefits of Cost Segregation for Three Common Types of Commercial Properties
Cost segregation is a tax strategy that can dramatically improve cash flow for property owners through accelerated depreciation deductions. This technique involves identifying and reclassifying components of a property into shorter-lived asset categories, which can be depreciated over a shorter period than the standard 39-year life for commercial real estate. Here's how different types of commercial buildings—restaurants, inline retail, and public storage facilities—can leverage cost segregation to their advantage: