What is the difference between cost segregation, bonus depreciation, and accelerated depreciation?

Cost segregation is a process of identifying and separating certain elements of a building or property into separate categories for tax purposes. These categories, known as "personal property," can be depreciated more quickly than the structure itself, allowing for a larger tax deduction in the first few years of ownership.

Bonus depreciation is a temporary tax incentive that allows businesses to claim a larger depreciation deduction on qualifying property in the first year of ownership. This can be particularly beneficial for businesses that are making significant investments in new equipment or property.

Accelerated depreciation is a method of depreciating an asset over a shorter period of time than the traditional straight-line method. This allows for a larger tax deduction in the early years of ownership, with the remaining value being depreciated over a longer period of time.

In summary, cost segregation is a process of separating certain elements of a property for tax purposes, bonus depreciation is a temporary tax incentive for businesses to claim a larger depreciation deduction in the first year of ownership, and accelerated depreciation is a method of depreciating an asset over a shorter period of time for tax purposes.

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