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Accelerate depreciation to reduce taxes and boost cash flow with an engineering-backed cost segregation study that identifies every eligible deduction and stands up to IRS scrutiny.
COSTSEGREGATION
What is a Cost Segregation Study?
A cost segregation study identifies building components that can be depreciated faster than the building itself.
By reclassifying assets like removable flooring, cabinetry, specialty finishes, and site improvements into shorter tax lives (5, 7, or 15 years instead of 27.5 or 39 years), property owners can take larger deductions sooner, improving cash flow and reducing current tax liability.
SOLUTIONOVERVIEW
Cost Segregation Explained: Strategies, Timing, and Tax Savings
CLIENTVOICES
Real People. Real Feedback
Excellent customer service! I worked with several people during the course of 3 studies they performed, and every one of them was kind, knowledgeable, and great to work with. This is a group that really seems to do their best, and I would recommend them!
John H.
I have had a really good experience! I’m really happy with the team’s responsiveness. I’ve been so pleased with the work already done that I plan to move forward with all my projects in the future. I’ve learned so much about cost segregation, and now I am telling everyone I can about it.
Kamila K
We decided to go with CSA Partners because their process is easy and they explained each step to us. The team is very knowledgeable and helped us put together a thorough report.
Anonymous
ANDERSONADVISORS
What Properties & Assets Qualify?
Nearly every commercial and residential rental property qualifies for cost segregation — especially if purchased, built, or renovated after 1986.
- Apartment Complexes
- Office Buildings
- Hotels & Resorts
- Retail Centers
- Banks
- Restaurants
- Medical Offices
- Industrial Warehouses
- Self-Storage Facilities
- Distribution Centers
- Manufacturing Facilities
- Assisted Living
- Auto Dealerships
- Golf Courses
- And More
ANDERSONADVISORS
Assets that qualify for accelerated depreciation:
5-Year Property (Personal Property)
- Carpeting & Removable Flooring
- Window Treatments & Blinds
- Specialty & Decorative Lighting
- Cabinetry & Built-in Millwork
- Countertops & Fixtures
- Auxiliary HVAC Components
- Specialty Plumbing Systems
- Security & Data Systems
- Wall Coverings & Decorative Finishes
- More building components
15-Year Property (Land Improvements)
- Parking Lots & Asphalt Paving
- Sidewalks, Curbs & Gutters
- Landscaping & Irrigation Systems
- Fencing & Retaining Walls
- Exterior Site Lighting
- Storm Drains & Site Utilities
- Signage & Monuments
- Outdoor Amenities
- Site Improvements
- Additional land improvements
CSAPARTNERS
Frequently Asked Questions
How much does a cost segregation study cost?
Study fees begin at $3,000 and are based on project’s size and scope. However, the tax savings almost always exceed the cost by a significant margin (often 10:1 or higher). We provide a free, no-obligation analysis upfront so you know the expected ROI before committing. If the numbers don’t make sense, we’ll tell you.
What documentation do I need to provide?
Basic requirements include: property address and acquisition date, purchase closing statement, current depreciation schedule (if available), and building cost information. Construction drawings are helpful but not required. We can often obtain or reconstruct missing documentation. If you’re uncertain what you have, we’ll work with you to gather what’s needed.
When is the best time to perform a cost segregation study?
The best time is as soon as possible after purchase, construction, or renovation, but it’s never too late. Studies can be performed at any time during property ownership, and catch-up depreciation (IRS Form 3115) allows you to capture missed deductions without amending prior tax returns. Many property owners perform studies years after acquisition and still see substantial benefits.
Can I perform cost segregation on a property I’m planning to sell?
Absolutely. Even if you’re planning to sell within a few years, the immediate tax savings and improved cash flow often justify the study. Additionally, you’ll want to consider a 1245 Exchange study to minimize depreciation recapture taxes on the sale.
What if my property was purchased or built years ago?
You can still benefit significantly. IRS Form 3115 allows you to claim all missed depreciation from prior years as a “catch-up” deduction on your current tax return, without the need to amend previous returns. We’ve conducted studies on properties held for 10+ years, yielding excellent results. The key is to act now to accelerate future depreciation.
How is your approach different from other firms?
We use licensed engineers with construction backgrounds—not just software. Our team performs on-site inspections and applies real-world construction knowledge to identify opportunities others miss. Cost segregation is ALL we do (no competing services), and we provide lifetime audit support at no additional cost. The result? Higher reclassification rates and IRS-defensible studies.
Will a cost segregation study trigger an IRS audit?
Cost segregation is an IRS-approved tax strategy, not a red flag. When performed correctly with proper documentation and engineering support, studies are defensible and compliant. We follow the IRS Cost Segregation Audit Techniques Guide standards precisely, and we’ve never had a study disallowed. Plus, we provide 100% no-cost audit support for the life of your property ownership.
Do I need to be profitable to benefit from cost segregation?
Not necessarily. While you need taxable income to claim the deductions, losses can be carried forward (up to 20 years for NOLs) or back in some cases. Many investors use cost segregation strategically, even in loss years, to maximize long-term tax planning. Real estate professionals who actively participate may have additional options.
How long does the study process take?
Typical timeline is 3-4 weeks from engagement to final report delivery. This includes data gathering, on-site inspection, engineering analysis, and report preparation. Rush studies are available when timing is critical (such as year-end tax planning or property sales). We’ve completed studies in as little as 2 weeks when needed.
What types of properties don’t qualify?
Properties that generally don’t qualify include: personal residences (primary homes), property held for sale (inventory), tax-exempt entity-owned property (unless designer/contractor allocation applies), and very small properties with a depreciable basis under $300,000 where the study cost exceeds potential savings.
Unlock Hidden Tax Savings with Cost Segregation & Advanced Tax Strategies
Reduce taxes, increase cash flow, and maximize your property investment returns with CSA Partners’ proven tax tools.