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What Is A Cost Segregation Study?

A cost segregation study gathers information that is used to maximize depreciation on commercial and investment properties. A cost segregation study gives an in-depth look at various components of the property (everything from appliances to landscaping) to determine costs that can be depreciated over a shorter period of five, seven, or 15 years. A cost segregation study is also crucial for property owners who want to recover costs more quickly in the first year with bonus depreciation.

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