Cost Seg? Buying a 170K sq ft refer plant, with $10M+ equipment.

[Chris Blackburn]

(Refrigeration - Not Cannabis) (shame on you;)  (well we are in Oregon)
We are buying a manufacturing and refrigeration warehouse with at least $10M worth of older equipment that we cannot use.   How does cost seg work with this?  We paid $3.7M for the project.    Anyone use a cost seg for the existing equipment even if we are removing this to legally maximize the deductions?    Let me know your thoughts as I have not looked at the application of cost seg on equipment we are removing to repurpose.   

[Julio Gonzalez]

@Chris Blackburn I typically recommend doing the cost segregations study prior to any rehab/demolition. This would also allow you to utilize the Partial Asset Disposition deduction. This deduction is related to the loss on disposal of certain assets in your building such as replacing or removing existing components of the building.