What a cost segregation study does
A building is not one asset. Inside the price you paid are flooring, cabinets, appliances, lighting, fencing, paving and landscaping. Those parts wear out faster than the walls and roof, and the tax rules let you write them off faster too.
A cost segregation study finds those parts and puts a value on each one. The result is more depreciation in the first years you own the property, and less tax in those years.
Who it fits
- You bought a rental or short-term rental. The study is based on what you paid and what the property includes.
- You improved a property. A renovation or addition can be studied on its own.
- You want the first-year deduction. 100% bonus depreciation is permanent for property acquired after January 19, 2025 under the 2025 tax law, so qualifying parts can be written off in year one.
- You can use the loss. A short-term rental owner who meets the 7 day and hours tests may use it against other income. Long-term rentals have tighter limits. We tell you which side you are on.
It is not for everyone. If you plan to sell soon, or the loss would sit unused, the study may cost more than it saves. We say so.
Cost segregation pricing
Every study is virtual, built from your closing documents, photos and property details, and reviewed by an engineer. The price depends on which study your property needs, not the number of doors.
| Study | Fits when | Price, per property |
|---|---|---|
| Standard study (virtual) | Unadjusted basis under $1.2 million, under 3,500 square feet, and less than $80,000 in renovations. Delivered in about 4 business days. | $1,597 |
| Fully engineered study (virtual site visit) | Over any one of those limits | $3,497 |
| In-person site visit | Optional, added to a fully engineered study | Quoted on your call |
| 5+ units, commercial, mixed use or several properties at once | Custom quote |
Pricing applies to properties with an unadjusted basis under $1.2 million, under 3,500 square feet, and less than $80,000 in renovations. Larger properties need a fully engineered study, priced above.
Not sure which one you need? Tell us the purchase price, square footage and what you put into the property on your call, and we will tell you.
What you get
- A cost segregation study for your property
- The depreciation schedule and bonus election set up correctly on your return
- A plain answer on whether you can use the loss this year, and how
- Form 3115 for properties already in service, when it applies
- One CPA who knows your whole return, not a separate firm that never sees it
How it works
- Free discovery call. Twenty-five minutes with Sargis. Tell us about the property, the purchase date and what you did to it. We say whether a study is worth it.
- We prepare the study. You send the closing statement, photos and any improvement costs through our secure portal. We build the study from them.
- It goes on your return. We review the finished study, take the depreciation on your return and walk you through the result.
Own a short-term rental?
If the property is a short-term rental, the study is included in our STR Tax Advantage Plan, with your 1040, the 7-day and hours checks, 100% bonus on your return and two strategy meetings. You do not need to buy the study separately.
General education, not tax advice for your situation. Results depend on your facts and records and vary by property. Depreciation taken can be recaptured when you sell.
Questions we get asked
What is a cost segregation study?
A study that splits a building into its parts, such as flooring, cabinets, lighting, fencing and paving, and sorts each part into the right depreciation life. Parts with 5, 7 or 15 year lives are written off much faster than the 27.5 or 39 years for the building itself.
Is 100% bonus depreciation really permanent now?
Under the 2025 tax law, 100% bonus depreciation is permanent for qualifying property acquired after January 19, 2025. That is why a study on a recent purchase or a major improvement can move so much depreciation into year one.
Is a cost segregation study always worth it?
No. A study has a cost, the extra depreciation can be recaptured when you sell, and a large loss only helps if you can use it against your income. We look at your numbers first and tell you straight if it does not make sense.
I bought my rental a few years ago. Is it too late?
Often not. If the property is already in service and you never took the faster depreciation, a Form 3115 method change can catch it up in the current year without amending old returns. We check this on the call.
Do you do studies for long-term rentals too?
Yes. Cost segregation works for long-term and short-term rentals. Whether the loss can offset your other income depends on your situation, so we map that out before you decide.
Do you work with owners outside North Carolina?
Yes. Everything is remote with secure uploads, e-signatures and Google Meet. We serve rental owners in all 50 states.