Mixed-use properties, combining residential, retail, office, or other asset types, present unique opportunities for accelerated depreciation through cost segregation. Because residential portions often follow a 27.5-year schedule and commercial portions use 39 years, careful allocation is essential to properly separate and classify assets. Qualifying components can range from residential amenities like rooftop decks and fitness centers to commercial features such as signage, display areas, and specialty lighting, along with shared site improvements. This variety can create multiple layers of eligible assets and substantial early-year deductions.
Whether developing, acquiring, or renovating a mixed-use property, we perform cost segregation studies that account for each distinct component type and provide consulting to help you identify eligible assets, maximize deductions, and ensure accurate allocation across both residential and commercial portions.