What is Cost Segregation?

• It’s a study that takes a house and breaks it into different asset classes. So instead of all of it being depreciated by 27.5 years, portions will be classified as 5, 10, 15, 20 and 27.5 year assets. The assets that are 20 years or less get bonus depreciation which for 2024 is 60%. So it offers a lot of depreciation in year one and the next few years, but less in the later years.