Commercial real estate asset acceleration involves many building components that many wouldn't think of. You can view a short list of assets that can be used to accelerate depreciation and lower your federal taxes. See it here <click here>
The other challenge when identifying building components for depreciation acceleration is a assigning costs. That's why cost segregation studies require professionals with building, engineering and tax expertise. The key to a valuable cost segregation study is details. The details enable the commercial property owner to maximize benefits (tax reductions) while balancing cost and risk. Though tens of thousands of studies have never been contested by the IRS their are some firms that take short cuts when performing studies. While the cost of the study can be reduced when taking short cuts, the risk is increased that the IRS guidelines will not be met. Not to mention leaving tax benefits on the table or in the walls so to speak.
The difference between a thorough engineering based cost segregation study and a less thorough residual cost segregation study is illustrated in the video <click here>.
From an IRS point of view there is only one method and that is an engineering based cost segregation study that provides details, Details and more DETAILS.