What is cost segregation?

Cost segregation is a powerful tax planning strategy that allows rental property owners to accelerate depreciation deductions and improve cash flow. Rather than depreciating the entire cost of a property over a single recovery period, a cost segregation study identifies building components and land improvements, such as appliances, cabinetry, flooring, lighting, specialty electrical and plumbing, parking areas, sidewalks, fencing, and landscaping, that qualify for shorter depreciation lives. By accelerating these deductions into the early years of ownership, investors can significantly reduce taxable income and free up capital for additional investments or property improvements. Recent changes under the One Big Beautiful Bill Act (OBBBA), including the return of 100% bonus depreciation for qualifying assets, have made cost segregation an even more valuable tax saving opportunity for many real estate investors. Our technology driven approach combines CPA expertise, engineering principles, and artificial intelligence to deliver high quality cost segregation analyses more efficiently than traditional methods.