In a Cost Segregation Study, certain commercial building costs previously classified with a 39-year depreciable life, can instead be classified as personal property or land improvements, with a 5, 7, or 15-year rate of depreciation using accelerated methods. Residential buildings, including multi-family buildings are subject to a 27.5 year life. An “engineering-based” study allows a building owner to depreciate a new or existing structure in the shortest amount of time permissible under current tax laws. The benefits of a Cost Segregation Study include:- ​ -An immediate increase in cash flow -A reduction in current tax liability -The deferral of taxes -The ability to reclaim “missed” depreciation deductions from prior years (without having to amend tax returns) “Engineering-based” cost segregation enables commercial real estate owners to reallocate real property (under Code Sec. 1250) to personal property (under Code Sec. 1245). This results in a substantially shorter depreciable tax life and accelerated depreciation methods.