TaxFederal
Cost Segregation Study
Accelerates depreciation by reclassifying building components into shorter tax lives, front-loading deductions.
Are you a provider?
What it’s worth
Typically frees 20–40% of a building's basis into 5/7/15-year lives; often a large first-year cash-tax benefit.
How often you need it
One-time study per property; revisited on acquisition, construction, or major renovation.
What you provide
Provide property records, cost basis, and closing/construction documents; ~2–4 weeks of provider work.
Risks to know
IRS scrutiny if the study is not engineering-based; recapture on later sale.When it matters: At filing and on audit.
Helpful reading
- Closing statement or purchase agreement for each property
- Depreciation schedule from your most recent tax return
- Construction or renovation cost detail, for built or renovated properties
- Site plan or appraisal showing building size and use
Ready to start?
Answer a short set of questions and send it anonymously.
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