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COST SEGREGATION

Most buildings are depreciated over 27.5 or 39 years. That's the default — not the requirement.

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A cost segregation study breaks a property into its actual components and reclassifies everything that qualifies as personal property or land improvements into 5-, 7-, and 15-year lives. Cabinetry, specialty electrical, flooring, site work, landscaping, parking, dedicated HVAC — items that carry real cost and short lives, buried in a single building basis. Reclassifying them front-loads depreciation into the years you own the property, which means deductions now instead of decades from now.

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The effect is time value of money, not magic. You're accelerating deductions you were entitled to anyway. But with 100% bonus depreciation available again on qualifying property, that acceleration is worth considerably more than it was a few years ago.

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You don't have to catch it in year one. For a property already placed in service, we can perform a look-back study and claim the entire missed depreciation as a catch-up adjustment on your current return — no amended returns required. We also identify retired components for partial asset disposition elections, so demolished assets come off the books instead of depreciating alongside their replacements.

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Our studies are engineering-based and built to the standards set out in the IRS Cost Segregation Audit Techniques Guide: component takeoffs, cost allocations, and a documented report supporting every reclassification. If your return is examined, the file is ready.

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Cost segregation isn't right for every property. Short holding periods, passive loss limitations, and depreciation recapture on sale can all change the math. We'll run a no-cost benefit estimate before you commit to anything, and if the numbers don't justify the study, we'll tell you.

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Ask us what your building is actually worth in deductions.

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