Cost Segregation Services

Keep More of What You Earn

A cost segregation study is one of the most powerful, IRS-approved strategies to improve cash flow and reduce current tax liability. By identifying and reclassifying certain building components – such as flooring, lighting, cabinetry, landscaping, paving, and specialty plumbing, to name a few components, you can accelerate depreciation and claim larger deductions now instead of over decades.

Our team of engineers and tax professionals deliver fully documented, audit-ready studies that help you recover more of your investment faster.

Why It Matters Now

Tax laws evolve, but opportunities exist right now to take advantage of accelerated depreciation and bonus depreciation rules. The sooner you act, the greater the benefit:

• Immediate Cash Flow – Keep more capital in your business this year.
• Bonus Depreciation – Deduct most of your qualifying property costs right away, instead of spreading them over decades.
• Strong ROI – Clients recover the cost of the study several times over in the first year alone.

How Cost Segregation Works

Cost segregation accelerates depreciation by carving out short-life components (5, 7, 15-year) from the building shell (27.5/39-year). An engineering analysis identifies and documents these assets, your CPA books the itemized schedule, and you claim larger deductions sooner – enhanced by bonus depreciation. For older properties, Form 3115 provides a one-time catch-up; for future remodels, PAD lets you write off what you remove. Net result: faster deductions, better cash flow, immediate savings.

1) Start with the depreciable basis
We separate the purchase or construction cost into land (not depreciable) and improvements (depreciable). Improvements include the building, sitework, and eligible soft costs tied to construction.

2) Identify short-life assets inside the building
Using an engineering takeoff, we inventory items that qualify as personal property (5–7-year MACRS) or land improvements (15-year MACRS)—things like dedicated process electrical, specialty plumbing, finishes serving equipment, cabinets/millwork, signage, data cabling, parking lots, curbs, fencing, exterior lighting, etc. The remaining “shell and structure” stays at 27.5/39 years.

3) Reclassify by tax life
Each component is mapped to the correct life under MACRS. Typical result: 20–40% (varies by property type) of the improvements move out of 27.5/39-year to 5, 7, or 15-year classes, front-loading deductions.

4) Produce an audit-ready asset schedule
The reclassified costs are delivered in an itemized schedule your CPA imports to the fixed-asset ledger. For prior-year properties, the adjustments are taken with Form 3115 (Section 481(a) catch-up)—a one-time deduction that “catches up” missed depreciation without amending returns.

5) Optimize future renovations (PAD & QIP)
When you remodel, we can elect Partial Asset Disposition (PAD) to write off the remaining basis of removed components. Eligible interior work in non-residential buildings may qualify as Qualified Improvement Property (QIP)—a 15-year life and potentially bonus-eligible (subject to the rules in effect in that year).

6) Cash-flow impact (how it actually saves)
The larger first-year deduction reduces taxable income immediately. If deductions exceed income, the excess may contribute to a net operating loss (NOL) that carries forward under current law limits. (Passive-activity and at-risk rules can affect timing; your CPA will apply them.)

Who We Serve

• Commercial & Residential Property Owners – From office buildings to multifamily complexes.
• Real Estate Investors & Developers – Maximize after-tax returns on new builds and acquisitions.
• CPAs & Tax Advisors – Add value to client relationships without adding work to your plate.
• Property Management Firms – Unlock hidden value for your portfolio clients.

The Process…It’s as easy as 1, 2, 3

1. Free Benefit Estimate We review your property details and provide a conservative savings projection—at no cost or obligation.

2. Site Inspection & Engineering Analysis Our specialists visit the property virtually or physically, document eligible assets, and reclassify them into shorter depreciation categories (5, 7, or 15 years).

3. IRS-Compliant Report for Your CPA You receive a detailed engineering-based study with clear asset breakdowns, citations to tax authority, and all supporting documentation your CPA needs to file.

Why Choose Us

• Full-Service Process – From estimate to final delivery, we handle everything.
• Specialized Expertise – Our firm has been conducting cost segregation studies for over 25 years, with invaluable knowledge of engineering and tax law experience.
• Audit-Ready – Every study is designed to stand up to IRS review.
• Nationwide Service – We complete studies in all 50 states, for nearly every property type.

Ideal Properties for Cost Segregation

• Newly constructed buildings
• Recently purchased commercial or residential rental properties
• Major renovations or expansions
• Properties placed in service within the past 15 years (retroactive studies may be possible)

Get Started Today

Every month you wait could mean lost tax savings. Let’s find out what’s possible for your property.

Click here for a Free Estimate – and start keeping more of what you earn.