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Any type of income-producing property placed into service after 1986 qualifies for cost segregation. We frequently work on residential such as short-term rentals as well as commercial projects.

We pride ourselves on offering affordable cost segregation studies for every budget and property type. Our self-directed Rapid Report (available for smaller residential properties, up to 4 units) is available for $950. Fees for our Fully Engineered Study vary based on square footage, property type and complexity. Compare our cost segregation study services or request a free proposal for your property here.

The best time to perform a cost segregation study is within the tax year that the building is purchased or construction is completed.

You can have a look-back study done on assets acquired as far back as 1987 and claim the resulting write-offs using the 3115 Automatic Change without amending prior-year tax returns.

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There are diminishing returns to performing a study the longer you own and depreciate a property. Contact us to determine if your property is a fit for a cost segregation study.

If you are planning to sell the property in a taxable transaction a cost segregation study may not make sense because of recapture.

We generally recommend you hold a property for at least 3-5 years. However, if you are planning to enter into a like-kind exchange (non-taxable transfer of your property for another property) you will not have depreciation recapture issues until you sell the replacement property.

It's essential to differentiate between active income, earned through employment or business activities, and passive income, derived from investments or rental properties. Unless you are a Real Estate professional, you may not apply losses from a Cost Segregation to offset your W2 Income.

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However, in the case of short-term rentals, income generated from renting out a property is generally considered passive. Yet, if the taxpayer actively manages and maintains the rental property, there may be an opportunity to offset this passive income against their active income. Consulting with your tax professional is advisable to determine your eligibility for such adjustments.

Yes, The cost segregation study serves as a valuable tool for your CPA to optimize property depreciation. It is a one-time process with no specific timeframe for completion. If you intend to leverage the study for a particular tax filing, it remains valid for that tax year as long as the property was placed in service within that same tax year or prior. The report holds its validity as long as it is submitted before you file your taxes, irrespective of the year in which the study was conducted.

Yes. If Congress reinstates 100% bonus depreciation through pending legislation, RE Cost Seg will provide free updates to any eligible cost segregation studies completed before the effective date of the new law. This means we will issue revised depreciation schedules at no cost, allowing you to take full advantage of the increased first-year deduction.

The update will include an amended depreciation schedule and summary report that reflect the new 100% bonus depreciation rate. Eligible clients will be notified by RE Cost Seg and given a simple process to request their free update. This ensures you maximize your tax benefits under the latest IRS guidance—without needing to commission a new study.

RE Cost Seg is committed to supporting your long-term tax strategy and ensuring your study continues to deliver value if and when tax laws change.

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