How Cost Segregation Works
Rather than depreciating an entire commercial building over 39 years, a cost segregation study identifies components that qualify for 5, 7, or 15 year depreciation under IRS guidelines.
Reclassifying these assets allows owners to accelerate deductions and improve near-term cash flow.
Properties That Benefit Most
Cost segregation studies are frequently performed for:
• apartment buildings
• medical and dental offices
• office buildings
• retail properties
• industrial buildings
• self-storage facilities
Projects with a purchase price or construction cost above $500,000 typically produce the most meaningful results.
The Process
Preliminary review
A quick analysis determines whether a study is likely to produce significant tax benefits.
Engineering-based study
Building components are identified and classified according to established IRS guidance.
Comprehensive report
A detailed study supports the revised depreciation schedules.
Coordination with your CPA
Your accountant applies the results when preparing your tax return.
Independent Cost Segregation Specialist
Hopper McDonough provides independent cost segregation services with a focus on clear communication, efficient turnaround, and close coordination with CPAs.
Based in Bath, Maine, services are provided to property owners and accountants nationwide.
Request a Preliminary Analysis
A preliminary review can quickly determine whether a study is likely to produce meaningful tax savings.
📞 (207) 975-5489
