Who Benefits From Cost Segregation?

A cost segregation study may be conducted on any building that has been placed in service by a tax paying company that does not show an operating loss. The following are examples of good cost segregation opportunities:

New construction and renovations
Acquisitions of property
Buildings that have been previously placed in service without a cost segregation study and are currently depreciating entirely over 27.5 or 39 years
Clients with a large asset base that have numerous small assets (i.e. retailers)

Although this list is not comprehensive, taxpayers with the following property types should consider engaging in a cost segregation study:

Amusement Parks
Apartment Buildings
Auto Dealerships
Banks
Casinos
Distribution Facilities
Grocery Stores
Hi-tech Facilities

Hospitals/Clinics
Hotels
Leasehold Improvements
Malls
Manufacturing (Any Type)
Offices
Railroads
Recreational Facilities

Restaurants- Fast Food
Restaurants- Sit Down
Retail Stores
Shopping Centers
Sports Facilities
Utilities
Warehouses

This chart illustrates SourceCorp’s typical ranges of accelerated property for several different building types: