A dollar of tax savings today is worth more than a dollar spread across the next 39 years. In this episode, Tom Brodie, National Account Executive with CSSI – Cost Segregation Services, explains how accelerated depreciation helps property owners keep more of their money.
The Problem With Standard Depreciation
By default, commercial buildings are depreciated over 39 years and residential rentals over 27.5 years. The deductions are real, but they arrive slowly, long after you’ve paid for the property.
How Accelerated Depreciation Works
A cost segregation study identifies building components that qualify for shorter schedules:
- 5 and 7-year property: items like certain flooring, cabinetry, specialty electrical and fixtures
- 15-year property: land improvements like parking lots, sidewalks, fencing and landscaping
Moving those costs into shorter categories front-loads your deductions, lowers taxable income and frees up cash you can put back to work.
Real Numbers
Example result: a manufacturing facility purchased in June 2020 for $5,431,703 (less land) produced a first-year tax savings benefit of $670,299. Results vary by property.
See What Your Building Could Save
Tom will run a free, no-obligation estimate on your property, so you’ll know what’s possible before you commit to anything.
Prefer to talk now? Call Tom at 713-906-3710.
I’m a two time Texas A&M graduate (BBA: 1981 & MBA: 2001) who worked for Shell Oil Company for 26 years. I learned the importance of communications – both verbal and written, as well as problem solving skills. With experience ranging from finding intra-company billing errors to defining customer requirements in global budgeting software to teaching people how to scuba dive and take pictures underwater. Tom Brodie Bio
