Experience with Accelerated Depreciation?

[Bobby Esposito]

Started working with a new firm that takes advantage of accelerated depreciation. Seems like a very interesting concept and was wondering if anyone has any experience with it?

Basically depreciating a house over 5 years instead of 27.5 or 39 for commercial property. I see huge tax credits being generated via this process.

[Yonah Weiss]

@Bobby Esposito, I think what @Steve Morris is saying is more accurate. You cannot accelerate the depreciation of your entire property to a 5 year schedule, however there are many components of that property that can be. In some cases even upwards of 20% of that property can be allocated to 'personal property' that depreciates on a 5 year schedule, and like Steve said, it's done through a process called cost segregation.

Check again with the firm that you started working with, and make sure you both understand what's really happening.

Happy to answer any questions on the subject :)