Cost Segregation Services for Commercial Real Estate
Owning or developing commercial real estate often comes with significant tax obligations that feel fixed year after year. Many property owners don’t realize how much flexibility exists within depreciation rules.
As an independent CPA, IT, and Wealth firm, Haynie works with property owners to evaluate whether cost segregation applies to their assets. By reclassifying certain building components to accelerate depreciation, cost segregation can increase current year deductions and improve cash flow to support reinvestment, financing, or expansion decisions.
Properties That May Benefit From Cost Segregation
Cost segregation is commonly used by owners of income-producing real estate who want to improve near-term tax results. It can apply to newly constructed properties, recent acquisitions, or properties placed in service in prior years that have not yet been reviewed.
This strategy is often considered for office buildings, industrial facilities, retail centers, multifamily properties, warehouses, and other commercial real estate where construction or acquisition costs are high.
Reaching out to a Haynie advisor can clarify whether this strategy applies to your property.
How Cost Segregation Creates Tax Savings
Cost segregation separates qualifying components of a commercial property into shorter depreciation periods, increasing depreciation deductions in earlier years. This shift does not change total depreciation over time, but it changes when those deductions occur.
A cost segregation study involves:
Cost segregation is typically evaluated alongside other tax planning considerations. Learn more about Haynie’s tax services and how they support real estate owners.
Cost Segregation FAQs
Most cost segregation studies are completed within several weeks, depending on property size, available documentation, and the level of detail required. Timing is often coordinated to align with tax filing deadlines or planning decisions.
Supporting documentation often includes:
In many cases, yes. An on-site review supports proper identification of qualifying components and documentation. Some studies may rely on construction records and cost data when site access is limited, depending on property details.
A cost segregation study may reclassify costs related to components such as:
Cost segregation can increase the amount of property eligible for bonus depreciation by shifting costs into shorter asset lives. This can accelerate deductions further, depending on current tax law and the year the property was placed in service.
Find Out If Cost Segregation Applies to Your Property
Many owners qualify based on acquisition costs, construction details, and holding period. Reach out to connect with a Haynie advisor and find out whether this strategy can improve the tax results of your real estate assets.
