Webinar - The Basics of a Cost Segregation Study

The Basics of a Cost Segregation Study

In a webinar hosted on March 12th, 2020, John Hanning from KBKG joined us to discuss the Basics of a Cost Segregation Study and the benefits of accelerated depreciation.

[Webinar] The Basics of a Cost Segregation Study

The tax implications of investing directly into real estate have long been considered favorable. This became even more true with the passage of the Tax Cuts & Jobs Act (TCJA) in late 2017. However, there are multiple different topics that could fall within this category.

This week we decided to focus on the potential tax benefits received from accelerated depreciation.

In a webinar hosted on March 12th, 2020, John Hanning from KBKG joined us to discuss the Basics of a Cost Segregation Study and the benefits of accelerated depreciation.

In this webinar we cover:

  1. What a Cost Segregation Study is
  2. The goals of a Cost Segregation
  3. The types of property that are eligible
  4. The potential NPV benefits of Accelerated Depreciation
  5. Tax Reform Updates surrounding Depreciation

Some highlights from the webinar:

What is a Cost Segregation?

A cost segregation is the process of identifying all property-related costs that can be depreciated faster. This could be from acquired property, new construction, or even remodels or build-outs.

The Benefits of a Cost Segregation

1) Accelerated Depreciation

With a cost segregation study you have the ability to depreciate property over shorter lives. For instance, shifting the cost associated with purchasing a commercial property from 39-year property into 5, 7, or 15 year tax life. This increases tax deductions early for increased cash flow.

2) Establishing Depreciable Tax Value

There are a lot of items associated with a piece of real estate that have a high likelihood of needing replacement in the future. A cost segregation study established a value for each individual item to assist with disposition later down the road.

Previous Articles


A Guide to Office Building Classifications

Office building classifications are pretty straightforward and are either labeled as class A, B, or C. Each of these classes vary…


Real Estate Syndications vs. Funds – Which Should You Invest In?

Real estate syndications and funds are two excellent entry points into the world of commercial real estate, but is one better than the other?


The Tokenization of Real Asset Investing

With the arrival of blockchain technology, those in the commercial real estate space are witnessing a transformation that’s expected to…


Why Some Places are Great to Live but Bad to Buy

Though population growth is something to consider with each commercial real estate investment, it doesn’t entirely predict where your next…


Beyond E-Commerce: Trends Driving Industrial & Logistics Development

E-commerce has been a main driver behind this positive pattern. Beyond E-Commerce: Trends Driving Industrial & Logistics Development


3 Tips for Sourcing Commercial Real Estate Opportunities

One of the first questions that most commercial real estate investors have is: How do you source new opportunities?


Inside the Boom of Catalog Sales and Music Royalties

Bob Dylan sold his entire music catalog to Universal Music for more than $300 million, Paul Simon to Sony Music. Inside the Boom…


Best Practices for International Investors in US Commercial Real Estate

International Investors from around the world are attracted to the opportunities that the US economy has to offer. Why do they choose the US?

Excelsior Capital

A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.

Interested in learning more about Excelsior's investment opportunities?


Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.

Excelsior Capital

104 Woodmont Blvd, Suite 203
Nashville, TN 37205

Contact Us