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Cost Segregation Services

  • What It Is:
    Cost segregation is a specialized tax strategy that helps property owners reduce their current tax bills by identifying parts of a building that can be depreciated more quickly.

  • Why It Matters:
    By accelerating depreciation, you can lower your taxable income now instead of waiting 27 or 39 years to claim deductions—freeing up cash for reinvestment, debt reduction, or other financial goals.

  • Who It’s For:
    This service is ideal if you’ve bought, built, or renovated commercial or rental real estate.

  • How It Works:

    • A team of specialists examines your property to break out assets like lighting, flooring, and plumbing.

    • These components are then reclassified to shorter depreciation schedules.

    • You get a detailed report supporting these changes, ready for your CPA and the IRS.

  • Who Benefits:
    • Ideal for investors, developers, and business owners who have acquired, constructed, renovated, or expanded real estate.

    • Process:

      • Conduct a detailed engineering-based study to identify and separate non-structural components (e.g., fixtures, electrical systems, flooring).

      • Reclassify assets for faster depreciation according to IRS guidelines.

      • Deliver a comprehensive report that can be used to support the reclassification during audits.

    • Tax Implications:

      • Immediate reduction in taxable income through accelerated depreciation.

      • Potential to reclaim missed depreciation via a catch-up adjustment (IRS Form 3115).

      • Enhanced use of bonus depreciation (currently 60% in 2025, subject to legislative changes).

    • Strategic Integration:

      • Aligns with broader financial planning strategies such as cash flow modeling, tax deferral plans, and estate planning.

      • Supports better decision-making on property acquisitions, timing of improvements, and disposition strategies.

    • Compliance & Risk Management:

      • Adheres to IRS guidelines and audit standards.

      • Supported by engineering reports and tax law expertise to minimize audit risk.

  • How It Fits Your Financial Plan:

    • Improves cash flow in the near term.

    • Supports long-term investment, retirement, and estate planning strategies.

    • Increases the return on your real estate investments.

  • Is It Safe?
    Yes. When done correctly, cost segregation follows IRS guidelines and includes the detailed documentation needed to stand up in an audit.

  • Why Work with Us?
    As your financial planning team, we coordinate every part of the process—making sure this tax-saving opportunity fits smoothly into your bigger financial picture.