A Cost Segregation Study dissects the construction cost or purchase price of real property that would normally depreciate over a long period and reallocates costs into shorter tax lives of 5, 7 or 15 years. This one-hour introductory course will provide background information, depreciation rules, and how a cost segregation study is performed.

Objectives:

• Explain what cost segregation is, how taxpayers benefit from it, and how it has changed over the years
• Identify tax issues that should be considered in conjunction with a cost segregation studies
• Recognize the potential impact of cost segregation on estate planning
• Discuss the impact of tax reform on cost segregation
• Discuss cost segregation opportunities related to the tangible property regulations and disposition regulations
• Identify new opportunities to immediately deduct abandoned building components, avoid recapture tax, and expense demolition costs