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By M. Scott Hursh, CPA, CCIFP*
Managing Partner
Architectural, Engineering and Construction (AEC) Industry Group
As a commercial property owner, you're probably depreciating the building over 39 years. So every year, you get to deduct 1/39th of the property's value (excluding land) from your taxes.

That's a long time to wait to receive all the tax benefits. Fortunately, there may be a way to accelerate the deductions and reduce the current year's tax bill.

By conducting a "cost segregation study," you can dramatically speed up the depreciation process. That's because certain items that are part of the building may qualify for faster write-offs. Depending on the property, a cost segregation study takes a percentage of the cost out of 39-year depreciation and puts it into five, seven or 15-year depreciation recovery periods.

It's best to do a cost segregation study when a building is placed in service but there may be opportunities later on that are available to your company.

With a cost segregation study, you can improve cash flow by reducing your tax bill the very next time you file a return! Contact Scott Hursh, CPA, CCIFP, to find out more about the Stambaugh Ness service. You can reach him at 717-757-6999 or 800-745-8233 or send an email to him by using the form below.


* Certified Construction Industry Financial Professional
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