Does a Cost Segregation Study generate additional depreciation deductions over the buildings life?
No. Total depreciation over the life of the building will not change. A cost segregation study changes the timing of the depreciation deductions, allowing for a greater amount of depreciation to be deducted in the first 15 years of the building’s life; and, a significant portion of that will be deducted in the first five or seven years. This is what creates the NPV benefit.
