Frequently Asked Questions

Browse answers about cost segregation, real estate tax strategies, and depreciation.
Find what you need, fast.

Clear
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
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

Will a day care center be a good fit for cost segregation?
Property and Asset Class Guidelines

Yes, day care facilities can be great candidates for cost segregation, and we've completed many with strong outcomes. We can provide a free benefit analysis with a few basic property details.

How is pricing structured for Fully Engineered studies?
Partners

Pricing is based primarily on the property's depreciable basis and complexity. Full fee tiers are outlined in our overview deck, and we can confirm exact pricing once we have the property details.

What deliverables will I receive?
Partners

Every study includes two core deliverables:


1) Cost Segregation Report (PDF)

  • Summary of findings
  • Asset classifications and recovery periods
  • CSI-format cost breakdown
  • Legal framework, methodology, and disclaimers

2) Depreciation Schedule (Excel)

  • Fixed asset listing with placed-in-service dates, methods, and bonus eligibility
  • Year-by-year depreciation breakdown
  • Formatted for direct import into tax software
What's the methodology difference between Rapid and Fully Engineered?
Partners

Fully Engineered:

  • Component-level asset breakdown
  • Engineering-based cost methodology
  • Defensible value allocation aligned with IRS guidelines

Rapid:

  • Modeled using templated engineering logic
  • Backed by expert engineer review
  • Designed for speed while maintaining compliant methodology

Both are IRS-defensible. The right choice depends on complexity and your timeline.

‍

Are there fees to join the partnership?
Partners

No. Signing up for any R.E. Cost Seg partnership program is free. No setup fees, no minimums.