(248) 822-9010
1800 W. Big Beaver Rd | Suite 100
Troy, MI 48084-3531



  • Construction and Contractors
  • Dealerships
  • Food Service/Restaurants
  • Golf/Country Clubs
  • Professional Service Firms
  • Manufacturing
  • Medical Practices
  • Not-for-Profit Organizations
  • Oil and Gas
  • Real Estate
  • Retailers and Wholesalers
  • Retirement and Employee Benefit Plans
  • Service Industries
  • Technologies

Cost Segregation Studies

If you own a building acquired in or after 1987 with a cost basis of $500,000 or more, you may be a good candidate for a cost segregation study. An effective cost segregation study analyzes the architectural and structural components of a building and separates them into components that can be depreciated using accelerated depreciation methods for income tax purposes. Without a cost segregation study, a building will be depreciated for tax purposes over 27.5 years (for residential real property) or 39 years (for non-residential real property). With a cost segregation study, some parts of a building may depreciate as quickly as five or seven years, resulting in more depreciation expense being available earlier for tax purposes on an annual basis. This can reduce taxable income substantially, especially early in the depreciable life of the building.
Whether you are purchasing or have purchased an existing building or are constructing a new building, we can assist you in taking advantage of cost segregation provisions to maximize your tax savings. We have the ability to approximate potential tax savings if you can provide us with some basic information about your building. The following types of buildings are ideal candidates for cost segregation studies:
• Office buildings
• Restaurants
• Retail properties
• Manufacturing facilities
• Warehouses
• Rental apartment buildings
• Healthcare facilities
• Assisted living facilities