Cost Segregation Studies
Accelerate your depreciation, maximize your cash flow. Our engineering-based cost segregation studies typically reclassify 20-40% of building costs into shorter depreciation categories, unlocking significant tax savings in year one.
Turn Your Building Into a Tax Advantage
Commercial buildings are typically depreciated over 27.5 years (residential rental) or 39 years (nonresidential). But not every component of your building should be depreciated that slowly. Electrical systems, plumbing, flooring, parking lots, landscaping, and specialized fixtures can all be reclassified into 5, 7, or 15-year categories.
A cost segregation study — performed by licensed engineers working with our tax team — identifies every component that qualifies for accelerated depreciation. The result is a dramatic front-loading of your tax deductions and significantly improved cash flow.
Example: $2M Commercial Building
Without cost seg: ~$51,000/year in depreciation. With cost seg: $200,000-$400,000 in year one. That is 4-8x the deduction in the first year alone.
Free Feasibility Analysis
Not every property benefits equally. We start with a complimentary analysis to determine if a study makes financial sense for your situation.
- Property type and cost basis review
- Estimated reclassification potential
- Projected tax savings calculation
- Return on investment analysis
- No obligation to proceed
How It Works
From feasibility to tax savings in four steps.
Feasibility Review
We review your property details, cost basis, and current depreciation to determine if a study is worthwhile.
On-Site Inspection
Our partner engineers conduct a detailed inspection of the property, documenting every component and system.
Engineering Analysis
Components are classified into appropriate depreciation categories using IRS-compliant methodology and supporting documentation.
Tax Integration
We incorporate the study results into your tax return, claim the accelerated deductions, and file any required accounting method changes.
Properties That Benefit Most
Cost segregation is most effective for properties with significant non-structural components.
Office Buildings
HVAC systems, electrical wiring, specialty lighting, and tenant improvements often qualify for shorter depreciation lives.
Retail & Restaurants
Kitchen equipment, decorative finishes, signage, and specialized plumbing are strong candidates for reclassification.
Apartment Complexes
Appliances, carpeting, cabinetry, and site improvements like parking and landscaping accelerate depreciation significantly.
Warehouses & Industrial
Loading docks, specialized flooring, and heavy-duty electrical systems are typically reclassifiable.
Medical & Dental
Specialized plumbing, gas systems, and built-in medical equipment create substantial reclassification opportunities.
Hotels & Hospitality
Furniture, fixtures, decorative elements, and specialized systems create some of the highest reclassification percentages.
Frequently Asked Questions
Common questions about this service area.
Related Services
Explore other ways we support our clients.
Tax Planning & Advisory
Strategic tax planning to maximize all available deductions and credits for your real estate portfolio.
Learn MoreBusiness Tax & Compliance
Professional preparation of business returns that incorporate your cost segregation benefits.
Learn MoreBookkeeping & Accounting
Accurate tracking of depreciation schedules and property basis for your real estate holdings.
Learn MoreRequest a Free Feasibility Analysis
Find out how much you could save. Our team will review your property details and determine if a cost segregation study makes financial sense.
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