What Is a Cost Segregation Study?
A smarter way to depreciate your investment property and potentially save thousands in taxes.
When you purchase a residential rental property, the IRS generally requires you to depreciate the building over 27.5 years. But here's what many investors don't realize: not everything in your property has to be depreciated over 27.5 years.
A cost segregation study takes a closer look at your property, identifying and separating qualifying components that can be depreciated over much shorter periods, typically 5, 7, or 15 years.
These components may include appliances, carpeting, certain flooring, fixtures, fencing, landscaping, and other property improvements.
Unlock More Tax Savings
From Your Investment Property
Your investment property may offer more depreciation deductions than you realize. A cost segregation study identifies qualifying components that can be depreciated over shorter periods, helping you take advantage of valuable tax deductions sooner.
Reduce Your Tax Liability
A portion of your property's value may qualify for accelerated depreciation rather than the standard 27.5-year residential rental recovery period. By identifying these components, cost segregation can create larger upfront deductions and potentially reduce your current income tax liability.
Improve Cash Flow
Why wait decades to claim depreciation deductions you may be eligible to take sooner? Accelerated depreciation can provide valuable tax savings today, freeing up cash for property improvements, additional investments, or other financial priorities.
Maximize Bonus Depreciation
Qualifying property components may be eligible for 100% bonus depreciation under current federal tax law. Combined with cost segregation, this can create substantial first-year deductions and help investors maximize available tax benefits.
Get More Value From Your Property
Cost segregation isn't just for large commercial buildings. Owners of residential rental properties, including short-term rentals, may benefit from the same tax strategies. Our affordable, streamlined studies make these opportunities more accessible to everyday real estate investors.
Hidden Tax Savings Are Built Into Your Property.
Discover the untapped tax-saving potential in every part of your investment.
A cost segregation study breaks down your property into individual components, from appliances and flooring to landscaping and outdoor improvements, to identify assets that qualify for accelerated depreciation.
Instead of waiting 27.5 years to recover the cost of your entire residential rental building, you may be able to deduct qualifying components much sooner.
The result? Larger upfront deductions, potential tax savings, and more money working for you today.
Simple Process
At 24 Hour Cost Seg, we’ve simplified the cost segregation process so you can start saving—without the headaches. Here's how it works:
Step 1: Submit Your Property Info
Complete our short intake form with details about your property, purchase price, closing date, address, building type, and condition.
Step 2: We Perform the Study
Our team of cost seg specialists, CPAs, engineers, and real estate pros, analyzes your property and breaks it into IRS-approved asset categories with shorter depreciable lives (5, 7, or 15 years). Based on industry standards and IRS regulations.
Step 3: Receive Your Audit-Ready Report
Within 24 hours, you’ll receive a detailed cost segregation report that includes:
-
Summary of accelerated depreciation
-
Class-by-class breakdown of assets
-
Final numbers for your CPA to plug into your tax return
Big Tax Savings Start with a Simple Question.
Curious how cost segregation works, whether your property qualifies, or how much you could save? We're here to help you make sense of the numbers.
Ask away. The only bad question is the one that leaves money on the table.
David L., CA
"I didn’t realize how much depreciation could impact my short-term rental until I worked with 24 Hour Cost Seg. They identified over $110,000 in accelerated depreciation. I’ll never buy another property without doing this first."
Olivia P., TX
"I refer all my investor clients here. The team provides detailed deliverables, audit support, and works directly with tax preparers, making my job easier and my clients very happy."
Logan R., FL
“I couldn’t believe how fast the team at 24 Hour Cost Seg delivered our study. The report was detailed, easy to understand, and saved us over $80,000 in taxes this year alone. They truly live up to their name.”