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:
