What Properties Qualify for Cost Segregation?
Cost segregation and bonus depreciation can be a boon for almost any type of business, but which commercial properties actually qualify? Thankfully, the threshold is quite low and could apply to just about every business under the sun, as long as it has been developed enough.
The property must be of a commercial nature that is run with profits in mind
There should be a depreciation basis of $500,000 or more
Real property that was constructed or acquired after 1986. Extensive remodeling could apply as well.
Thanks to its versatility, there is no limit to the property types that cost segregation and O’Connor can help you with. Here are a few examples, but there are many more that could qualify:
Multi-family residential property (apartments of all types)
Rental homes
Office buildings, including both low-rise and high-rise
Medical, dental, and veterinary offices
Hospitals
Retail and shopping centers
Strip shopping centers
Malls
Auto dealerships and service centers
Restaurants and fast-food places
Storage facilities
Drug stores and pharmacies
Warehouses of all types (Office, mini, and more)