| Cost Segregation Studies - Overview
Actually, I am familiar with this concept quite well and here is my take on this subject. First of all, it is a fact that:
" It has been well known by the Tax experts that "changes in the 1987 tax law and recent court case rulings have identified certain assets that are subject to an accelerated depreciation method enabling real estate owners to reap the benefits of increased tax write-offs through a rapid depreciation and thereby resulting in a potential reduced tax liability".
Some of the assets that are subject to an accelerated depreciation are as follows:
1.Site improvements
2.Suite uilities
3.Site Municipal Systems Infrastructure
4.Furniture and Equipment and Equipment(FF & E)
5.Specific Equipment such as pnematics, hyrdraulics
6.Capital equipment
The cost recovery specialists would basically show you how you can take advantage of this rapid depreciation write-off and hopefully their study report will enable you to properly capitalize your assets in the appropriate category that would offer the best option for gaining maximum current year depreciation.
This Cost Segregation study is not cheap generally, and it requires a team of highly technical competence in Engineering, Construction, Estimating and Tax discipline. These reports are also very sophisticated in nature and generally for big commercial projects they generally yield a much better ROI.
Clearly, and I would recommend that you consult your CPA first to determine whether this study makes sense for you financially and that is appropriate for your situation.
If you need help, please contact me directly and I can provide you with a very reputable company to assist you in this matter. | 
