A cost segregation study or report identifies and reclassifies components of your asset into shorter useful life in order to accelerate depreciation, which can result in significant tax savings. It is a tax planning strategy that works by identifying parts of your building that can be depreciated faster than the standard 27.5 or 39 years.

Property owners who earn rental income and want to offset their active or passive income.

This includes:
Residential real estate owners (from 1 property to 150+), Commercial real estate owners, Airbnb, vacation rental, and short-term rental owners. Owners of multifamily, retail, office, medical/dental, self-storage, industrial, warehouse, single-family rentals, hotels, and restaurants.
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To qualify, properties should have a cost basis of at least $200,000, be placed in service after 1986, and have remaining depreciable basis.

A cost segregation study can be performed at any time during a building's ownership. However, the earlier you complete it, the greater the benefit. Accelerated depreciation is most valuable in the early years of ownership.

We will send you a questionnaire to complete which lists the types of real property and tangible assets (i.e., fixtures) in your building, their estimated cost, and the year they were placed in service.

After reviewing the information provided, we will have a follow up call with you.

For the self-directed engineer reviewed report, we will ask clarification questions and to request pictures of certain items. We will produce the report within 2-3 weeks.

For the fully engineered report, we will schedule an onsite visit. Your report will be ready in 2-3 weeks following the onsite.

Whether you just purchased your first investment property or have a portfolio of real estate, we work with individuals and businesses of all sizes across the US.

Getting started is easy! Simply reach out to us through our website contact form or email. We'll reach out and send you a questionairre to complete. From there, we'll propose a strategy tailored to your needs. Once you're ready to proceed, we'll kick off the report generation process.

Property owners can depreciate assets that meet the following criteria:
The property must be owned by you (including property subject to debt), used in your business or income-producing activity, have a determinable useful life, and be expected to last more than one year.

Depreciation begins when you place property in service for use in your trade or business or for income production. Depreciation ends when you have fully recovered your cost basis or retire the property from service, whichever occurs first.

Property owners who lease residential property 100% of the time (with no personal use) can benefit from a cost segregation study, as they are permitted to deduct out-of-pocket expenses, including accelerated depreciation.

Real estate losses are generally classified as passive and can only offset passive income. Only real estate professionals can use real estate losses to offset ordinary income such as wages or business profits.

To qualify as a real estate professional, you must:Perform over 750 hours in real property business during the year, spend over half of your working hours in real property business, and materially participate in your rental activities.

Yes. Airbnb and short-term rental properties (where average guest stays are 7 days or less) are classified as commercial businesses rather than passive rental activities.Cost segregation can accelerate depreciation and generate tax losses that directly reduce W-2 income. For example, if your Airbnb generates $50,000 in rental income but has $100,000 in depreciation, the resulting $50,000 loss can directly offset your taxable W-2 income.

Yes. Tax deductions offset your taxable income, which includes capital gains. Cost segregation is a powerful strategy to unlock tax deductions, freeing up capital for reinvestment or other opportunities.

Yes. A historical cost segregation study can identify assets that benefit from shorter depreciation periods, enabling you to accelerate tax deductions and free up capital.Regarding bonus depreciation: the tax law applicable when property was placed in service determines eligibility. Properties placed in service during periods when 100% bonus depreciation was available (September 28, 2017 through December 31, 2022) may still benefit, even though the current year is 2025.