Cost Segregation is the IRS approved process of accelerating depreciation on a real estate asset by separating non-structural personal assets and land improvements from real property assets.
In general, buildings can be depreciated over either a 27.5-year (residential properties) or a 39-year (commercial properties) period based on their classification as Section 1250 property. However, certain categories of assets within a building can be depreciated more quickly, over five, seven, or 15 years due to their reclassification as Section 1245 property.
