1. Understanding 15-Year Land Improvement Depreciation
Unlike apartment buildings depreciated over 27.5 years, a major portion of a park's purchase price is allocated to 15-year land improvements: roads, water and sewer mains, and electrical infrastructure.
2. The Power of Engineered Studies
A specialized cost segregation study at acquisition accelerates deductions into early years, shielding positive operating cash flow and providing passive tax efficiency.
3. Key Tax Takeaways
- Engage a certified engineering-based cost segregation firm during the acquisition tax year.
- Work with a CPA experienced in commercial land-lease accounting to optimize state and federal deductions.