office building cost segregation

Commercial investors are searching for ways to improve cash flow. One technique is office building cost segregation.

How does cost segregation work? Commercial real property (not including the land) is depreciated over 39 years. Real property includes walls, wiring, floors, windows etc. Personal property such as furniture, fixtures, machinery would be depreciated over 5-7 years. Land improvements such as parking lots, landscaping and sidewalks would be depreciated over 15 years.

It is common for shorter-term properties to be depreciated over longer than necessary terms. A cost segregation study identifies opportunities for tax savings.

Office Buildings typically incorporate many short life components. Our cost segregation studies consider all office suites and all common areas within the building when identifying these items. Additional opportunities are found in the lighted parking areas or parking structures, landscaping and building signage.

Click here to see actual savings examples for office building cost segregation.