Cost Segregation
Accelerating depreciation on real estate you own so the tax benefit arrives sooner instead of spread across decades.
What it is
When you buy or build commercial or rental property, the default is to depreciate it over 27.5 or 39 years. A cost segregation study breaks the property into components, things like fixtures, flooring, landscaping, and specialized electrical, that can be depreciated over much shorter periods.
The effect is that a significant portion of your deduction moves into the early years of ownership, providing cash now rather than over several decades. The study itself has a cost, so it is worth pursuing only above a certain property value, and we will tell you plainly whether yours meets that threshold.
Who it's for
- Owners of commercial or rental real estate
- Anyone who has purchased, built, or substantially renovated property
- Real estate investors with multiple properties
- Businesses that own the building they operate from
What's included
- Property component analysis and classification
- Engineering-based cost segregation study
- Depreciation schedule reallocation
- Look-back studies for property already owned
- Coordination with your return filing
- Honest assessment of whether the study is worth it for you
Where it fits
Cost segregation is a standalone project. If you own real estate and we prepare your return, we'll flag when it's worth considering.