How a Cost Segregation Study Could Reduce Taxes

Quick Insight

A cost segregation study can reduce your taxes by accelerating deductions for new buildings. Your tax accountant can help you decide if it’s right for you.

A cost segregation study identifies assets in your building purchase price or construction costs that qualify for shorter time periods than the standard building depreciation term. For example, items can be reduced from a 39-year term to 5, 7, or 15 years. Some items may be eligible for immediate deduction. This reduces your taxes to improve your cash flow and profits.

A cost segregation study can range from $5K to $25K, so the tax savings will have to exceed the cost of the study. Your tax accountant can estimate the saving in their proposal to help you decide if the study will save you money.  

I wish you lower taxes. I wish you well.

- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: Buying vs. Leasing a New Location - I’ll walk you through some of the key things to think about when buying or leasing a new location.
  • Course: Analyzing Whether to Add New Locations - A new location is a major commitment of time and money with the potential to expand a company’s business and increase profits. New locations also come with risks. I'll give you step-by-step guidance on how to decide whether a new location will increase profits or destroy value.

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