Case Studies

Real Estate Case Study: Cost Segregation


Client purchased an existing commercial building and did a complete asbestos removal project along with other significant tenant and building improvement projects.


The investment in the capital improvements described above was deducted over a fairly long period for tax purposes. Our goal was to maximize the depreciation expense allowed as much as possible.


Our real estate group worked with our affiliate, BDO Seidman, on a cost segregation study. The study analyzes the building, its structural components and other components and allocates the costs to the shortest-lived property allowed by the IRS. The cost segregation study allowed the client to take an additional $4.8 million in depreciation deductions in the year the study was done.