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The method

Precision is a process, not a guess.

Cost segregation isn't a loophole — it's the correct application of depreciation law, done with engineering rigor. Here's exactly what that means and how we do it.

The principle

A building is many assets on different clocks.

By default the IRS makes you depreciate a commercial building over 39 years (27.5 for residential rental) in one slow, straight line. But the law also recognizes that much of what's inside doesn't last that long — and shouldn't be depreciated as if it did.

A cost segregation study separates the property into its strata: the fast-life components that qualify for 5-, 7-, or 15-year schedules, and the long-life shell that stays on 27.5 or 39. Accelerating the fast layers pulls deductions forward — and with bonus depreciation, often into year one.

FIG. 01 — ASSET STRATABASIS ÷ LIFE
5 yr
Carpet · fixtures
7 yr
Equipment · FF&E
15 yr
Paving · landscaping
27.5
Residential shell
39 yr
Commercial shell
ACCELERATED ▮ cyanSTANDARD ▮ navy
Our process

Four measured steps.

01

Feasibility

We review your property, basis, and tax position and tell you — free — whether a study makes financial sense before you commit a dollar.

02

Site & data study

Engineering analysis of plans, cost records, and the property itself to identify and value every qualifying component.

03

Engineered report

A defensible, audit-ready report allocating costs across 5-, 7-, 15-, and standard-life categories with full documentation.

04

You & your CPA file

Your tax professional applies the results — including a 481(a) catch-up for prior-year assets, typically with no amended returns.

Worth understanding

Two ideas that change the math.

Look-back

You haven't missed the window.

Own the property already? A look-back study recovers the accelerated depreciation you should have claimed in prior years and lets you take it now via a 481(a) adjustment — no need to amend old returns.

Recapture

We model the downside honestly.

Accelerated depreciation can be partly recaptured when you sell. We show that trade-off up front — and for most owners the time-value of cash today still wins, with tools like 1031 exchanges to defer it.

Free analysis

Want the numbers for your property?

A free feasibility analysis turns all of this into a real, specific estimate for your building.