Stop overpaying tax on the property you already own.
A cost segregation study reclassifies parts of your building into 5, 7, and 15-year assets — unlocking tens of thousands in first-year deductions. Estimate yours below in 30 seconds.
$87K
Avg. Year 1 deduction unlocked on a $1M residential
20–40%
Typical share of basis reclassified to short-life
60%
2024 bonus depreciation phase-down rate
Form 3115
Catch up missed depreciation — no amended returns
Instant Estimate
See your Year 1 savings in seconds
Built on the IRS-recognized methodology our engineers use on every study. Adjust the inputs to model residential, commercial, current-year, and look-back scenarios.
Property Inputs
Tell us about the asset
Industry default: 20%.
Property Summary
Depreciable Basis
$800,000
Excluded Land Value
$200,000
Standard Path
Year 1 write-off without a study
$29,091
Straight-line over 27.5 years
Cost Segregation Path
Year 1 accelerated deduction
$106,182
Includes 40% bonus on $200,000 of short-life assets
The Bottom Line
Net estimated Year 1 tax savings
$33,978
+$24,669 more cash kept vs. standard depreciation
Look-Back Study flagged. Because 2025 is a prior tax year, you can catch up on missed depreciation in the current year via an IRS Form 3115 change-in-accounting-method — no amended returns required.
Estimates only. Industry-standard 25% reclassification assumption; actual studies typically range 20–40%. Not tax advice.
The Process
Four steps from purchase price to deduction.
Free consultation
We review your property details, tax situation, and goals in a 20-minute call. No pressure, no obligation — just honest guidance.
Partner matching
We reach out to our trusted cost segregation partners in your area — vetted firms we've built relationships with — to find the best fit for your project.
Engineering study by partner
Your matched partner handles the site inspection and full engineering study, reclassifying components into 5, 7, 15, 27.5, or 39-year buckets.
Report & audit support
You receive an audit-defensible report to file with your return or Form 3115. Your partner provides full audit defense for the life of the assets.
Who it's for
If you own depreciable real estate, this study likely pays for itself many times over.
- Short-term rental (STR) operators with material participation
- Multifamily, apartment, and residential rental owners
- Commercial office, retail, industrial, and self-storage owners
- Real estate professionals (REPS) offsetting active income
- 1031 exchange buyers wanting fresh basis acceleration
- Owners of properties placed in service in the last 15 years (look-back)
Rule of thumb
Properties valued over $500K almost always return more than the cost of the study in Year 1 alone.
Below that threshold, we'll tell you honestly if it doesn't make sense. No pressure, no upsell.
FAQ
The honest answers.
Is a cost segregation study IRS-approved?
Yes. The IRS Cost Segregation Audit Techniques Guide explicitly recognizes engineering-based studies as the gold standard for component reclassification.
What if I bought the property years ago?
You can still capture every dollar of missed depreciation in the current year using IRS Form 3115 — no amended returns required.
How does bonus depreciation phase-down affect me?
Bonus is 60% in 2024, 40% in 2025, 20% in 2026, and 0% in 2027 unless Congress acts. The accelerated reclassification itself still applies — bonus just front-loads more of it.
Can I use losses against my W-2 income?
Generally only if you qualify as a Real Estate Professional (REPS) or operate a short-term rental with material participation. Talk to your CPA — we'll coordinate.
Free consultation
Let's find the cash that's already in your building.
20-minute call with a licensed engineer. We'll model your exact property and tell you — straight — if a study makes sense.
property@costsegregationusa.netWhat happens next
From contact form to deduction — here's how it works.
We review your details
Within 24 hours our team reviews your property info, tax year, and any notes you shared. If we need more context, we'll reach out.
Free 20-minute consultation
A licensed engineer walks through your property profile, estimates reclassification potential, and answers every question — no pressure.
Schedule the site inspection
We coordinate a virtual or on-site visit around your schedule. Most inspections take 1–2 hours depending on property size.
Receive your study report
You get a full, audit-defensible cost segregation report ready for your CPA to file with your return or Form 3115.
Ongoing audit support
Every study includes lifetime audit defense. If the IRS ever asks questions, we stand behind our numbers at no extra cost.