Cost Segregation

Accelerate Depreciation. Improve Cash Flow.

A properly prepared cost segregation study identifies components of a building that may qualify for shorter depreciation lives — accelerating deductions into the early years of ownership.

An aerial view of a residential area with houses, green trees, winding roads, and several swimming pools.

What Is Cost Segregation?

Cost segregation is a tax strategy that analyzes the components of a real estate property to determine whether certain assets qualify for shorter depreciation periods than the building itself. Rather than treating an entire property as one long-term asset, a detailed study can identify components such as:

The result: accelerated depreciation deductions and improved near-term cash flow, subject to applicable tax rules and your individual circumstances.

Picturesque landscape of rolling farm fields with a few houses, surrounded by lush green trees, under a clear sky.

  • Flooring

  • Specialty electrical systems

  • Plumbing associated with specific equipment

  • Decorative finishes

  • Certain millwork

  • Site improvements

  • Landscaping

  • Parking areas

  • Certain equipment and fixtures

Why It Matters.

Keep more capital working for you.

For real estate investors, timing matters. Accelerating deductions may free up cash that can be used to:

  • Fund additional investments

  • Reduce financing needs

  • Complete property improvements

  • Increase liquidity

  • Reinvest in your portfolio

  • Strengthen overall cash flow

Properties We Analyze

Front view of a row of attached townhouses with brick and siding exteriors, multiple windows, and a small garden in the front yard. A white car is parked on the driveway to the right.

Multifamily

Apartments, townhomes, and other residential investment properties.

Aerial view of a commercial and industrial area with roads, parking lots, and buildings surrounded by greenery and residential hills in the distance.

Industrial

Warehouses, manufacturing facilities, and distribution centers.

Lobby area with green armchairs, light-colored walls, large windows, and decorative hanging light fixtures.

Hospitality

Hotels, motels, and other hospitality assets.

Open-plan office with employees working at desks with computers, large windows letting in natural light, and modern ceiling lighting.

Office

Office buildings, professional facilities, and mixed-use properties.

A woman with blonde hair smiling at a young customer in a retail or salon environment with a decorative wall, plants, and a modern light fixture in the background.

Retail

Shopping centers, standalone retail, and specialty properties.

A large industrial building with a gray metal roof and walls, and red roll-up doors. The building is situated on a paved lot with some cracks, and the sky above is partly cloudy with patches of blue.

Specialty Properties

Medical facilities, assisted living, self-storage, restaurants, and other specialized real estate.

Our Cost Segregation Study Process

  • 01 — Property Review

    We gather property details, acquisition information, construction costs, renovation expenses, and other relevant documentation.

  • 02 — Engineering Analysis

    Our team analyzes the physical components of the property and identifies assets that may qualify for accelerated depreciation.

  • 03 — Tax Classification

    Qualifying components are classified according to applicable tax depreciation rules.

  • 04 — Detailed Report

    You receive a comprehensive study documenting the methodology, classifications, calculations, and supporting analysis.

  • 05 — Tax Filing Support

    We work alongside your CPA or tax professional to help incorporate the study into your tax planning and filing process.

Is Cost Segregation Right For You?

Cost segregation can be particularly valuable when:

  • You’ve recently purchased a property

  • You’re constructing a new property

  • You’ve completed significant renovations

  • You own a property with substantial improvements

  • You’re planning to acquire additional real estate

  • You want to evaluate opportunities to accelerate depreciation

Every property and taxpayer is different. The potential benefit depends on factors including property type, cost basis, ownership structure, tax situation, and applicable tax law.

A large wooden house with a deck, surrounded by green trees and a well-manicured lawn, under a pastel-colored sky at sunset.
A suburban neighborhood with a well-maintained lawn, a concrete sidewalk, and a house with white brick and red brick exterior walls. The house features dark shutters and a gabled roof. There are young trees and landscaped bushes in the yard, with a streetlamp along the sidewalk. The sky is partly cloudy with patches of blue visible.

Frequently Asked Questions

  • How much does a cost segregation study cost?

    Cost depends on property type, size, and complexity. We provide a tax savings analysis upfront so you understand the potential opportunity before committing to a full study.

  • How long does a study take?

    Timelines vary by property, but most studies are completed within a

    few weeks of receiving the necessary documentation.

  • Will a cost segregation study trigger an audit?

    A properly documented, defensible study follows IRS guidelines and applicable tax law. Your CPA or tax advisor can speak to how it fits your specific filing.

  • Can I do a cost segregation study on a property I’ve owned for years?

    Yes — a “look-back” study can often capture missed depreciation on properties acquired in prior years.

Find Out What Your Property Could Be Worth From a Tax Perspective.

Request a Cost Segregation Analysis