Cost Segregation for Manufacturing

A cost segregation study could help manufacturers accelerate depreciation deductions on their real estate. BKD’s Jason Jobgen has more. Visit to learn about our cost segregation services.

In the real estate cost segregation process, engineers identify portions of a building that qualify to be deprecated for tax purposes over five, seven or 15 years, rather than the standard 39 years. This allows the taxpayer to recover more of the initial investment sooner by speeding up depreciation deductions.

BKD’s engineering professionals can identify and segregate a wide range of assets, from exterior assets like lighting and signs to foundational elements, portions of the building envelope and even heavy equipment. At the end of the process, property owners receive a detailed report tying each asset to its correct depreciable life.