What is a cost segregation study?
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A cost segregation study breaks down the components of your property into different IRS asset categories. Instead of depreciating your entire building over 27.5 or 39 years, certain components (like appliances, cabinetry, flooring, fencing, and landscaping) can be depreciated over 5, 7, or 15 years. With 100% bonus depreciation now available, you can deduct these reclassified amounts entirely in Year 1, dramatically reducing your taxable income.
What information do I need to provide?
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Just the basics: property address, purchase price, acquisition date, square footage, and year built. Our smart intake form guides you through everything — it takes about 5 minutes. No site visit required. You can optionally upload property photos, your closing statement, and tax assessment for even more accurate results.
Will this hold up in an IRS audit?
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Yes. Our studies follow the IRS Cost Segregation Audit Techniques Guide and include all 13 principal elements the IRS looks for. We use the same engineering-based methodology and cost databases as traditional firms. We recommend having your CPA review the report, and we include comprehensive audit documentation with every study.
How fast will I get my report?
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Reports are prepared after you submit your property details and payment. STR and residential studies are typically delivered within hours. Commercial studies may take up to 24 hours for larger or more complex properties. Compare that to the 4-8 week turnaround from traditional cost segregation firms.
What is FF&E and why does it matter for my STR?
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FF&E stands for Furniture, Fixtures & Equipment. For STR investors, this includes beds, couches, dining tables, TVs, rugs, wall art, coffee machines, patio furniture, linens, and small appliances. These are typically 5-year depreciable property (some items are 7-year), and with bonus depreciation they can be 100% deducted in Year 1. STR investors often spend $20K–$80K furnishing a property — our FF&E analysis ensures you capture those deductions instead of spreading them over 27.5 years.
Can STR losses offset my W-2 income?
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It depends on your participation. If you materially participate in your STR (the IRS uses a 100-hour / 750-hour test for short-term rentals), your rental activity is not treated as passive — meaning the losses can offset your W-2 or other active income. This is one of the most powerful tax strategies for STR investors. We recommend discussing material participation with your CPA, and our reports include the depreciation schedules your CPA needs to apply these deductions correctly.
Can I use this for a property I bought years ago?
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Absolutely. You can perform a "lookback" cost segregation study on any property you currently own, regardless of when you purchased it. The IRS allows you to catch up on missed depreciation deductions through a Form 3115 change in accounting method — and you don't even need to amend prior returns.
What's the ROI on a cost segregation study?
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Typical ROI is 10x to 30x the cost of the study. For example, a $750,000 STR property might yield $40,000+ in accelerated deductions, resulting in $15,000+ in estimated first-year tax impact (at a 37% tax rate). Against an $895 study fee, that's an ROI of over 15x. Higher-value properties ($1.5M+) use our $1,095 tier, but the returns scale accordingly.
