Cost Segregation Study
A component-level analysis of a building's costs, prepared for your tax adviser.
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Services
Our Services
Cost segregation studies for property owners, investors, and the CPAs who advise them.
Our services
More Than a Study. A Smarter Approach.
A cost segregation study separates a building's cost into shorter-lived components. That can accelerate depreciation deductions and improve near-term cash flow; the actual effect depends on the property and your tax situation.
Adviser Coordination
We work with your CPA so the study fits how your returns are prepared.
Learn moreAsset Classification
Components grouped into MACRS recovery periods — 5, 7, 15, 27.5, or 39 years.
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An asset schedule with the methodology and supporting documentation behind it.
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Study types
Studies for different situations
- Acquisition studies allocate a purchase price among land, building, and shorter-lived components, usually starting from the closing statement and an inspection of the property.
- New construction studies trace contractor and soft costs to the components they paid for, using pay applications, invoices, and drawings.
- Renovation and improvement studies classify new work and identify components that were removed, which may be eligible for a write-off.
- Look-back studies cover buildings placed in service in earlier years. Your CPA typically claims the missed depreciation through an accounting method change rather than amended returns.
Deliverables
What a study report is designed to include
- An asset schedule listing each component, its cost, recovery period, and placed-in-service date.
- A methodology section explaining how costs were determined and why each class was chosen.
- A reconciliation showing that the components add back to the property’s total cost basis.
- Supporting documentation such as photographs, drawings, and estimate worksheets.
Scope
Where our work stops and your CPA’s begins
A study supplies the classification and cost evidence. It does not prepare or file your return, decide whether bonus depreciation or other elections are right for you, or replace advice from your tax adviser. We coordinate with your CPA so the study arrives in a form they can use.
Not sure whether a study makes sense for your property? See property types and who we help, or request a conversation.