Cost Segregation FAQs

What is Cost Segregation?

Cost segregation is a tax strategy that allows property owners to identify and reclassify building components to accelerate depreciation deductions.

How long does a study take?

Most studies are completed within a few weeks, depending on the complexity of your property.

What types of properties qualify for cost segregation?

Most commercial properties and residential rental properties qualify. This includes office buildings, retail spaces, warehouses, apartment complexes, and even mixed-use properties.

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

Yes! Even if you’ve owned the property for years, you can apply a cost segregation study retroactively and claim missed depreciation through a "catch-up" adjustment.

Is cost segregation only beneficial for large properties?

Not at all. While larger properties tend to have higher savings potential, even smaller properties can see significant benefits, especially if they are recently purchased or renovated.

How much can I expect to save with a cost segregation study?

While savings vary based on property type and value, it’s not uncommon for property owners to save tens of thousands of dollars or more in the first year alone.

Is cost segregation compliant with IRS regulations?

Yes. Cost segregation is an IRS-approved strategy. All our studies adhere to IRS guidelines, and we provide detailed reports to ensure compliance.

 How does cost segregation impact future property sales?

Accelerating depreciation increases deductions now, but it can also increase recaptured depreciation tax when you sell. Our team can help you weigh the benefits and plan for long-term strategies.

What information do you need to get started?

We’ll need details about your property, such as purchase price, construction costs, and blueprints (if available). Our intake form will guide you through the process step by step

Can cost segregation be done on renovations or improvements?

Absolutely. Renovations and improvements often qualify for cost segregation, allowing you to accelerate depreciation on new assets added to your property.