Welcome to my new site! I have been publishing various blogs about real estate since 2006 – so nearly 20 years! Several years ago I started the successful blog called Cost Seg Building. I have published lots of information there pertaining to commercial real estate and the tax benefits associated with doing cost segregation.
As America looks to reindustrialize the nation and reshore all kinds of manufacturing, I thought it would be fun to dedicate a site to covering the topic of industrial real estate and cost segregation.
I have studied many industrial buildings as part of my work doing cost segregation and these buildings are all over the U.S. Some are the most complicated, intricate and expensive buildings ever built in the U.S. and others can be very simple metal, flex buildings that don’t cost much. But the point is, all of these buildings can be studied for tax savings. There are lots of misnomers about what’s a good building for cost segregation. The fact is they are ALL good buildings for cost segregation.
One of the topics I plan to cover here at Cost Seg Industrial is the new category of property that President Trump has been discussing and that got passed in the One Big Beautiful Bill is Qualified Production Property. This is a new asset classification whereby the entire building can be depreciated in year one if it’s part of the manufacturing process. There is a lot to this and we expect the IRS will be issuing updates and guidance soon. Let’s say you build a new $50MM facility to manufacture something. You have a large industrial space but then a few thousand square feet of office space as well as land improvements. It’s just the space that is immediately tied to the manufacturing of the product that you get to depreciate in year one. That’s going to be a massive deduction but it must be segregated from the other types of property or assets that you have on this property. So the building will need a cost segregation study by a reputable firm. So maybe you end up with $35 – $40MM as the deduction on this. It’s still massive.
Anyway, I look forward to connecting and providing those of you connected and involved with industrial real estate with the information you need to understand how you can further massive value and cash flow out of your buildings by doing cost segregation. Connect with me here…LinkedIn, Twitter, YouTube etc.
