Cost Segregation Blog by O'Connor Tax Reduction Experts

While cost segregation has never been more efficient in saving business owners on federal income taxes, there are still many misconceptions when it comes to what property can and cannot be included…

  With the return of bonus depreciation, thanks to the One Big Beautiful Bill (OBBB), more businesses than ever are exploring cost segregation. The ability to reduce or even eliminate federal income taxes by…

Cost Segregation is known to be a tax incentive that allows businesses to deduct the cost of assets that qualify over a short life depreciation schedule. It accelerates tax deductions, which can…

Understanding the legal background and rationale for property taxpayer cost allocation is crucial for comprehending cost segregation studies and their intricacies. Based on the IRS Cost Segregation Audit Technique Guide, O’Connor will…

Quick History of Depreciation 1913 To have a better understanding of cost segregation studies and its complexities, it is important to first learn the legal framework and history behind why property taxpayers…

O’Connor’s blog series covering, is here to educate and guide you to conduct a successful cost segregation study, as well as the different methodology, requirements compliant with the IRS, and examples dependent…

In 2024, O’Connor performed a cost segregation study for a retail property owner in Oklahoma where the end result identified almost $700K in accelerated depreciation by leveraging 100% bonus depreciation. O’Connor has…

As currently outlined in the Tax Cuts and Job Act of 2017, bonus depreciation is on track to sunset by 2027. Weigh in with your opinion: Do you think the new administration…

If you own a business, you’re probably familiar with the fundamentals of depreciation. The government permits you to deduct a portion of the cost of an asset you buy or build from…

Cost Segregation studies are a valuable tool that can provide business owners tax benefits allowing for improved cash flow and enhanced return on investment. Bonus Depreciation is one aspect of cost segregation…