What This Means for You
Commercial real estate investors face a longer default depreciation schedule — 39 years instead of 27.5 — which means cost segregation delivers proportionally greater acceleration. A $2M commercial property typically sees $464K reclassified into 5-year, 7-year, and 15-year MACRS classes, generating approximately $172K in first-year tax savings.
The component mix in commercial properties is often more favorable for cost segregation than residential. Office buildouts, retail tenant improvements, restaurant kitchen equipment, specialized electrical and plumbing systems, HVAC zoning, fire suppression systems, and parking lot improvements all qualify for accelerated recovery. In many commercial properties, 25-35% of the depreciable basis can be reclassified.
At $2M, the study cost of $2,995 represents a fraction of the tax benefit. Commercial investors often coordinate cost segregation timing with lease renewals, tenant improvements, or building acquisitions to maximize the tax impact in high-income years. The 100% bonus depreciation provision makes this particularly powerful — the entire reclassified amount is deductible in year one.
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IRS Compliant
Methodology aligned with IRS Audit Techniques Guide
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CPA-Ready Reports
30-40 page PDF your CPA can file directly
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Money-Back Guarantee
Full refund if the study doesn't save you money
