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This page outlines the IRS’s official view on cost segregation, spotlighting its Audit Techniques Guide as a reliable, accuracy-driven tool for depreciating assets. The IRS favors cost segregation over traditional depreciation methods because it assigns the proper recovery period to each component—typically ranging from 5 to 30-plus years—ensuring more precise tax treatment. It highlights how the Tax Cuts and Jobs Act of 2017 amplifies these advantages through expanded expensing of shorter-life property. By aligning classifications with IRS guidelines, taxpayers can substantiate accurate depreciation and fully leverage timing benefits.