With a Engineered Cost Segregation Studies, it can be divided into three primary components:

1. The building and the parts of it, such as the walls, roofs, hvac, and windows.
2. The land outside of the building, like parking lots, landscaping, and sidewalks.
3. and Then the machinery and fixtures.

I like the Land Improvements in this cast and divide it in half the parking lot and landscaping.

With a cost segregation study, it benefits the property owner for every million dollars that I am able to find in savings benefits the owner $70k on average.  My fee is 10% of the savings.  They don't pay anything during the initial analysis.  When they take advantage of the study, it allows the manufacturer to reclassify these assets from a 39-year depreciation schedule (used for traditional real property) to a much shorter 7-15-year schedule. By accelerating depreciation, a small manufacturing business can significantly reduce its taxable income in the early years of ownership. This creates immediate cash flow that can be reinvested into operations, new equipment, or business growth.  IRS allows me to go back 5 yrs to "Catchup" during the past years they did not do a study. So, this can be a significant financial boost for the property owner.