Cost segregation is the most efficient way to utilize commercial depreciation to lower your income tax. Designed for commercial properties built after 1986, cost segregation is an IRS-approved technique that accelerates depreciation by categorizing and itemizing a property into several parts, each with a different age and stage of depreciation.

This allows depreciation to be sped up for business personal property (BPP) and other aspects besides the building and land. This can result in savings in real time that can be used to lower your tax burden from the IRS.

Cost Segregation Analysis Has Many Benefits

Outside of the many benefits, cost segregation can also help keep a business in the good graces of the IRS by ensuring compliance with ever-changing regulations. A study done by property experts can also give a solid breakdown of notable short-term depreciation items, along with other units of property qualified under the 2014 IRS Tangible Property rules.

Outside of the many benefits, cost segregation can also help keep a business in the good graces of the IRS by ensuring compliance with ever-changing regulations. A study done by property experts can also give a solid breakdown of notable short-term depreciation items, along with other units of property qualified under the 2014 IRS Tangible Property rules.

O’Connor strives to surpass the guidelines laid out by the government. Utilizing the methodology prescribed by the IRS, O’Connor will identify short-term depreciation in both current and past forms, allowing you to get additional reductions on your income taxes. The IRS has five typical techniques that can be used to locate depreciation in cost segregation, with O’Connor favoring two of them: