As you are probably aware, a cost segregation study can be a valuable tool for increasing the net present value of a taxpayer’s depreciation deductions through their accelerated recognition.
Unfortunately, a cost segregation study does not create additional depreciation for a taxpayer. However, when used as an estate planning tool, it can result in the recognition of depreciation deductions for the decedent that would have otherwise gone unused.
This, in effect, creates depreciation deductions. A comprehensive white paper has been written about this subject and is available on our website.