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Giuseppe Cavucci
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How component lifespan thinking changed how I look at cost seg

Giuseppe Cavucci
  • online
Posted

Cost segregation gets people thinking in terms of component life for depreciation purposes, but I've noticed most of us stop applying that mindset once the study is done and filed away.

What's stuck with me is that the same component level thinking, roof, HVAC, water heater, each with its own expected life, is just as useful for planning replacements as it is for depreciation schedules. If you already have that breakdown from a cost seg study, you basically have a maintenance forecast sitting in a folder you're not using for that purpose.

Started cross referencing mine with actual install dates recently, and it's made planning for the next few years of capex a lot less of a guessing game.

Anyone else reusing cost seg component data this way, or does it usually stay siloed as a tax document once the study's done?

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