Cost Segregation Study Program
A Cost Segregation (Cost Seg) study speeds up depreciation on qualified parts of commercial or income-producing property, putting cash in your pocket sooner. Typically, 20 to 40% of a building’s cost can shift to 5, 7, or 15-year lives instead of the usual 27½ or 39 years, delivering big first-year deductions and instant cash flow relief.
Keeping up with the eligibility guidelines and filing requirements can be overwhelming. Leave the heavy lifting to our engineering and tax-incentive experts, and let us take these time-consuming tasks off your plate:
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Identifying assets that qualify for shorter depreciation lives
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Collecting blueprints, cost data, and construction records
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Creating an audit-ready deliverable with detailed asset schedules and IRC citations
Meet with a Cost Seg expert
About Cost Segregation
Cost Seg is an IRS-accepted engineering approach that dissects your building into its component parts (carpeting, specialty plumbing, parking lots, landscape, signage, etc.). The sooner you reclassify, the sooner you deduct, especially valuable while bonus depreciation remains 40% for assets placed in service during 2025 and will phase down further in 2026–27.
Qualifying for a Cost Segregation Study
Any taxpayer who owns, constructs, renovates, or purchases real property placed in service after 1987 may benefit. Ideal candidates include:
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Commercial properties with a cost basis ≥ $750k
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New builds or major renovations completed in the last 10 years
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Acquisitions where you plan to hold the asset ≥ 3 years
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Specialized facilities (manufacturing, auto dealerships, medical offices, hospitality, self-storage)
Qualifies
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Building purchases (new or used)
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Ground-up construction projects
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Leasehold improvements & major renovations
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Tenant-specific build-outs (e.g., clean rooms, data-center power)
Does Not Qualify
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Raw land or land value
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Personal residences
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Properties already fully depreciated
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Assets you plan to sell within 12 months
Schedule a meeting with an expert
Eligibility Indicators
You may qualify if you’ve invested heavily in site improvements like parking lots, lighting, or fencing; installed specialized mechanical, electrical, or plumbing systems; incurred sizable tenant-finish costs; or own property in a high-tax state where accelerated deductions yield especially strong returns.
Examples of Qualifying Components
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Decorative millwork & specialty flooring
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Dedicated electrical & plumbing for equipment
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Exterior signage and monument signs
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Landscaping & irrigation
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Paving, curbs, gutters, and walkways
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Security, audio-visual, and specialty lighting systems
