Cost Segregation delivers results every time it's applied!

So, What Does Accelerated Depreciation Really Mean?

Posted on October 24, 2013 by Jeff Hobbs

As a business owner, there is no doubt about it…you have plenty to worry about. From making sure that your business is running smoothly, all your supplies are ordered, the day to day operations run without fail and, of course, the filing of your yearly taxes. Did you know that by using accelerated depreciation you will be able to save an enormous amount of money on your income taxes which will increase your cash flow for your business. Accelerated depreciation is the key to a cost segregation study but the question remains, what does accelerated depreciation really mean?

money2Accelerated depreciation is an integral part of MACRS method of depreciation. It’s complicated but all business owners should have a basic understanding of what it is and how it may help your business. Basically accelerated depreciation is the process of applying MACRS to a building, office condo or leasehold improvement using 5-, 7-, 15-, and/or 39-year depreciation periods.


When you apply accelerated depreciation using cost segregation applied by Segregation Holding, the results achieved will far exceed one’s expectations. Our team of professionals will work hand-in-hand with you to ensure that you are getting the maximum tax benefits possible from an engineered cost segregation study. For example, did you know that normally 100% of the cost of non-residential commercial real estate is depreciated over 39 years? During a Cost Segregation Study, components of a property or leasehold improvement that can be depreciated over a shorter time (5, 7, or 15 years) are identified and reclassified. For example, 30% to 90% of the total electrical costs in most buildings can qualify for 5- or 7-year depreciation. The result of a Cost Segregation Study is that a property owner’s tax obligation is reduced and the cash flow is increased. Just imagine what that could do for you business.


If the idea of increasing your cash flow and reducing your current tax obligation sounds good to you, the time to contact Segregation Holding is today. Our engineers have expertise in tax laws, cases, and rulings on Cost Segregation, along with the real estate development and construction experience to maximize your tax savings. So go ahead and give us a call today or visit us online and request your free quote.

Contact us at 972-865-9050.


Visit our website today and see how we can help your business.


Be sure to follow us on Facebook for up to date tips and advice on cost segregation…or catch our tweets on Twitter!