While cost segregation is useful throughout the real estate life cycle, there are certain events that tee up particularly strong cost seg opportunities. These events should automatically trigger consideration of a cost segregation study, since picking the right moment can maximize benefit. Read on for our top 3 cost segregation study triggers – so you can proactively recognize opportunity.
1. New Construction of Commercial Property
Cost segregation takes advantage of the time value of money by front-loading depreciation to the early years of ownership. As such, to maximize savings from Year 1, a cost seg study should ideally be performed as soon as a newly constructed property is placed-in-service.
Consider a newly constructed hotel placed-in-service in 2021 (100% bonus in play.) Capstan was retained to perform a study immediately after construction was completed.
Recent Comments