{"id":12242,"date":"2014-02-26T14:18:04","date_gmt":"2014-02-26T19:18:04","guid":{"rendered":"https:\/\/www.certitrek.com\/nebb\/how-cost-segregation-affects-you-at-tax-time\/"},"modified":"2022-12-01T06:35:15","modified_gmt":"2022-12-01T11:35:15","slug":"how-cost-segregation-affects-you-at-tax-time","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nebbinstitute\/blog\/how-cost-segregation-affects-you-at-tax-time\/","title":{"rendered":"How Cost Segregation Affects You at Tax Time"},"content":{"rendered":"
Cost segregation is a technique used to depreciate assets. It divides real estate into different categories \u2014 personal property, such as machinery or equipment, land improvements, buildings on the land, and the land itself. Then, personal property and land improvements are depreciated quickly. This reduces the building owner\u2019s tax obligations. If your business is considering a building purchase or improvements on an existing building, this depreciation technique might be worth considering.<\/span><\/p>\n Personal property and land improvements are items that are useful for a relatively short period of time when compared to land or a building. A fence, a piece of furniture, or a piece of machinery aren\u2019t useful for more than a few years, which is why they can be depreciated more quickly.<\/p>\n If you decide or are advised by your accountant to have a cost segregation conducted, be sure to hire a certified appraiser<\/a> who knows how to perform a site inspection and can determine the value of any machinery or equipment eligible to fall under the personal property category of cost segregation.<\/p>\n