Sophisticated investors, particularly in the commercial real estate world, know all about cost segregation studies. In laymen’s terms, cost segregation (“cost seg”) studies involving examining a building and determining which components are not fixtures of the property and could hypothetically get removed. Cost Seg firms, typically made up of engineers and accountants, identify such items and determine new depreciation schedules for a property. Cost Seg Reports then typically illustrate the Time Value of Money (TVM) savings an owner receives by using the accelerated depreciation amount. In short, a Cost Seg expert shows owners if the Cost Seg Study is worth the cost of the engagement.