Frequently Asked Questions

Browse answers about cost segregation, real estate tax strategies, and depreciation.
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If you buy an Airbnb in December, do you get a full year of bonus depreciation?
Depreciation and Bonus Depreciation Rules

Yes! As long as the property is placed in service by December 31, you get the full bonus depreciation deduction for that year. Bonus depreciation isn't prorated by how many months you owned or used the property the way some other deductions are, so a property placed in service in December gets the same percentage as one placed in service back in January.

If the building was placed in service in 2024 (60% bonus year), do we only get 60% bonus if we file Form 3115 later?
Depreciation and Bonus Depreciation Rules

Generally, yes. The bonus depreciation percentage is tied to the year the property was acquired/placed in service. Filing a Form 3115 in a later year typically doesn't change that original bonus rate.

If we made improvements this year, can we take bonus depreciation on that?
Depreciation and Bonus Depreciation Rules

Potentially, yes. If the improvements include items that qualify as personal property and/or land improvements (and otherwise meet the requirements). Eligibility depends on the nature of the assets and the placed-in-service timing.

How many years can you go back for a look-back study?
Form 3115 and Compliance

Here's a detailed overview: https://www.recostseg.com/post/look-back-studies-10-years

Does your firm help prepare Form 3115 with a look-back study?
Form 3115 and Compliance

If the property has already been placed in service, we can absolutely help with a look back study and support the Form 3115 process.

Does cost segregation have to be done in the first year the property is acquired?
Form 3115 and Compliance

No. If you didn't do a cost segregation study in year one, you may still be able to complete a "look-back" study and catch up on missed depreciation using IRS Form 3115 (accounting method change), depending on your situation.

Are gas stations especially good candidates for bonus depreciation?
Property and Asset Class Guidelines

Yes, gas stations are some of the strongest candidates we see for bonus depreciation. The IRS classifies service station buildings on a 15 year recovery period instead of the usual 39 years that applies to most commercial buildings, so the structure itself already qualifies for accelerated treatment, not just the land improvements around it.


Add in canopies, fuel dispensers, underground tanks, paving, and signage, which also fall into short recovery classes, and nearly the entire property ends up eligible instead of the usual 10 to 30 percent we typically pull out of a standard building. That makes gas stations one of the highest return property types for a cost segregation study

Have you done a data center cost segregation study?
Property and Asset Class Guidelines

Yes, here's a relevant resource: https://www.recostseg.com/post/cost-segregation-data-centers