• Land is never expensed
• Buildings are expensed via depreciation – slowly
Commercial Buildings over 39 years Residential Buildings over 27.5 years
• Goal of Study
Segregate cost into asset classes with shorter depreciation lives
• 5 Year – electrical , millwork , appliances , specialized cost to support equipment
• 7 Year – “ built-in ” furniture / fixtures , cabinets
• 15 Year – Plumbing , Sitework , Land Improvements
• 39 Year – HVAC , Roof ; ( while no immediate benefit segregate for easier disposal later )
• Study effective for new construction AND purchasing existing structures