Cost Segregation on Commercial Build Out

[Zachary Gray]

Question for the masses:

If I did a commercial build out for my business on a building that I do not own would you need a cost segregation to utilize accelerated depreciation of paid in capital or would you be able to do it without a cost segregation?

Independent question, does anyone have recommendations for cost segregation on existing rental properties that I own?

[Yonah Weiss]

Quote from @Greg Scott:

Doing a cost segregation of an asset you do not own does not make any sense.

If you spent money making upgrades on a building you rent, those improvements could either expensed outright or you would have to capitalize them as an asset.  A CPA would know whether or not you could take bonus depreciation on the capitalized improvements, but since you already know what the cost was, there is no need for a cost segregation.

 @Zachary Gray Tenant Improvements, can and should be depreciated, especially when they are large, and cost segregation is certainly needed if you have structural and non-structural components. You do not need to own the property to be able to depreciate. However there could be complications if the owner reduced rent based on your cost of improvements. 

As far as your second question. BP doesn't allow self promotion 😉