Kutchins, Robbins & Diamond, Ltd. Certified Public Accountants and Advisors

Cost Segregation – Potential Tax Advantages for Business Property

Have you recently purchased property that you use in your trade or business?

If so, you should consider a cost segregation study.

What is a Cost Segregation Study?

A cost segregation study separates Section 1245 property known as “tangible” or “personal” property.  1245 property is depreciated over shorter depreciable lives mandated by the Internal Revenue Service (IRS).

Personal property does not include a building or any of the structural components of a building.

1245 property includes furniture, fixtures and equipment, carpet, decorative light fixtures, electrical costs that serve telephones and data outlets.

While not 1245 property, land improvements also have a shorter depreciable life than real property.

Our knowledgeable professionals at KRD can help you select a qualified engineering firm to perform the study. Contact us today to learn more. 


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