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Home/Tax Planning/Cost Segregation
Tax Planning
Accelerated depreciation · commercial RE

Get a cost segregation study. Accelerate depreciation. Cut taxes now.

Cost segregation reclassifies commercial real estate components for tax depreciation. The IRS standard is 39 years (commercial) or 27.5 years (residential rental) for buildings. Cost seg breaks down: 5-year (carpet, decorative lighting), 7-year (specialized equipment), 15-year (parking lots, landscaping), 39-year (structural). The reclassified components depreciate much faster, generating significant first-year tax deductions. We coordinate with engineering specialists.

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All 50 states + DC 60-day money-back SOC 2 Type II
How it works

How we handle Cost Segregation, end-to-end.

Cost segregation reclassifies commercial real estate components for tax depreciation.

1

Property eligibility

Best fit: commercial real estate purchased or constructed for $500K+ (smaller deals do not justify study cost). Office buildings, retail, hotels, industrial, multifamily all eligible. Residential rentals 27.5-year base.

2

Engineering inspection

Certified cost segregation engineer inspects property: structural components, mechanical systems, finishes. Engineering report categorizes each component into IRS recovery periods (5, 7, 15, 39 year).

3

Tax deduction calculation

Reclassified components depreciate faster. Year-1 deduction can be 5-10x the standard straight-line. Combined with bonus depreciation (100% in 2025), can fully expense reclassified components.

4

Form 3115 if existing

For existing properties already on the books, Form 3115 'change of accounting method' lets you catch up missed depreciation in the year of the study. No need to amend prior returns.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent cost segregation pricing.

Government fees pass through at cost. No upsells.

Single property

$7500
One property, full study.

Engineering inspection, component classification, Form 3115 if applicable, CPA coordination. Property basis under $5M.

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Larger property

$15000
Property $5M-$20M.

Engineering study for properties with basis $5M-$20M. Larger study scope; more detailed component analysis.

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Portfolio study

$29999
Multiple properties.

Multi-property study for real estate investors and developers. Coordinated engineering across portfolio. Significant savings vs. individual studies. Per-property pricing decreases at volume.

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FAQ

About the Cost Segregation Study Service.

What is a cost segregation study?
A cost segregation study is an engineering-based analysis that reclassifies parts of a building into shorter depreciation lives, accelerating depreciation deductions and improving early cash flow for real estate owners. It front-loads tax savings on a property. We help set up the entity that holds the property so the study applies cleanly.
Who benefits from a cost segregation study?
Owners of commercial or rental real estate, especially recently purchased, built, or renovated property, since the accelerated depreciation frees up cash in the early years. The larger the property, the bigger the benefit. We flag it as a tax lever for real estate investors and keep the entity structured for it.
How does cost segregation save taxes?
By moving components like fixtures, flooring, and land improvements from a long depreciation schedule to much shorter ones, you deduct more in the early years, deferring tax and improving cash flow, especially with bonus depreciation. We keep your property entity and records organized so the study is easy to apply.
Is cost segregation worth the cost of the study?
Often, for properties above a certain value, the tax savings substantially exceed the study's cost, though it is less worthwhile for small properties. A specialist estimates the benefit first. We flag it as an option and keep your entity structured so it is straightforward to use if it pays off.
When should I do a cost segregation study?
Ideally in the year you buy, build, or substantially improve a property, to capture the accelerated depreciation early, though a look-back study can catch missed depreciation on properties owned for years. We flag the timing so the benefit is not left on the table.
Does it work with a property held in an LLC?
Yes: whether the property is held personally or in a property LLC, the depreciation flows through to the owners, and holding it in an LLC also isolates liability. We set up the entity so the property is both protected and positioned for the study.
What happens when I sell the property?
Accelerated depreciation can lead to depreciation recapture at sale, taxed differently, so cost segregation is a timing benefit that shifts tax rather than eliminating it, and a 1031 exchange can defer that. We flag how it interacts with your exit so it fits the whole plan.
Who performs a cost segregation study?
Specialist firms with engineering and tax expertise perform the analysis and produce a report your accountant uses, so it is a professional service coordinated with your tax preparer. We keep your entity and records structured so the study and your returns line up.
Can File.Business help with my real estate structure?
We form the property-holding LLC, structure ownership, and keep the entity and records organized so tax tools like a cost segregation study or a 1031 exchange are straightforward to apply, coordinating with your tax professional on the study itself.

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