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. 


Newsletter signup

Receive our informative Newsletters with valuable tax, financial and business
operations information.



Read the latest news
from KRD and find out more.

Extended Consolidated Appropriations Act Benefits for Individual Taxpayers
IRS News: CP59 Notices
New Podcast: Preparing a Business for Sale

Request a callback

Would you like to speak to one of our financial advisors over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you prefer.

    I would like to discuss:


    1051 Perimeter Drive, 9th Floor
    Schaumburg, IL 60173

    Office: 847-240-1040
    Fax: 847-240-1055


    35 E. Wacker Dr., Suite 690
    Chicago, IL 60601

    Office: 312-201-6450
    Fax: 312-201-1286