What are some examples of items with shorter lives that a cost segregation study will uncover?
Carpet, window decorations, and cabinets are typically 5 year property. Driveways, landscaping, swimming pools and tennis courts are typically 15 year property. What is the difference between increased depreciation and accelerated depreciation? Cost segregation will not increase the overall amount of depreciation deductions you can claim on your rental property. The question is how long do you want to wait to claim those deductions? Residential property is depreciated over 27.5 years. If you keep your property 27.5 years you will get the same amount of depreciation with or without cost segregation. Cost segregation will increase the deductions you can claim in the first years of ownership. For example, with residential rental property if you have a cost segregation study in the first six years that you own the property you will get about twice as much depreciation deductions with the cost segregation study. Over the next ten years you will get almost the same amount of depreciation wit
