For many calendar year partnerships and S corporations, March 15 is the filing deadline. If you own investment real estate and cost segregation has not been considered, this is a good time to review whether it may be relevant to your situation and coordinate with your CPA or tax advisor before the return is finalized.
Cost Segregation Studies
Discover how cost segregation can help you identify qualifying property components, accelerate depreciation deductions, and improve cash flow. From apartment buildings and commercial properties to large real estate portfolios, USTAGI delivers engineering-based cost segregation studies nationwide, backed by experience since 2007 and more than 20,000 completed studies.
Explore Your Property’s Tax Savings Potential20,000+
& Counting
Experience Since 2007 | Service Nationwide
Since 2017, US Tax Advisors Group, Inc. (USTAGI) has helped real estate investors, developers, and commercial property owners identify opportunities to accelerate depreciation, maximize eligible tax deductions, and improve cash flow. With cost segregation experience dating back to 2007 and more than 20,000 studies completed nationwide, our team brings extensive experience to every property analysis.
From multifamily apartment complexes and retail shopping centers to industrial facilities, hotels, office buildings, and investment portfolios, USTAGI delivers engineering-based cost segregation studies designed to identify qualifying assets and uncover potential bonus depreciation benefits.
Our experience, detailed documentation, and commitment to audit-ready studies make us a valuable resource for property owners, real estate investment groups, and CPAs seeking defensible depreciation strategies that support long-term investment goals.
What qualifies for bonus depreciation? An engineering-based cost segregation study identifies eligible property components that may qualify for accelerated deductions, including 100% bonus depreciation under current federal tax rules. Discover opportunities to reduce taxable income and improve investment returns.
Cost segregation allows qualifying building components to be depreciated over shorter 5-, 7-, or 15-year recovery periods rather than the traditional 27.5 or 39 years for buildings. Accelerating eligible deductions can create significant tax advantages for commercial real estate investors and property owners.
Accelerated depreciation can reduce current income tax obligations, freeing up capital to reinvest in properties, fund improvements, reduce debt, or expand your real estate portfolio. Discover how strategic depreciation planning can support your next investment opportunity.
Cost segregation is more than a one-time tax deduction. It can be an important part of a broader tax strategy for acquisitions, renovations, and long-term property ownership. Work with your CPA to evaluate depreciation benefits, anticipate future tax implications, and plan with greater confidence.
From multifamily apartment complexes and retail centers to industrial facilities, hotels, office buildings, and multi-property portfolios, cost segregation can uncover valuable tax-saving opportunities. USTAGI's engineering-based approach helps investors identify eligible assets and evaluate depreciation benefits across a wide range of investment properties.
Explore expert insights on bonus depreciation, accelerated deductions, and cost segregation. Learn what qualifies, how potential tax savings are evaluated, and what property owners should know before selecting a cost segregation provider.
Discover which commercial property improvements and building components may qualify for bonus depreciation, and how cost segregation can help identify eligible assets.
Explore how accelerated depreciation can affect tax deductions and cash flow, the factors that determine a study's value, and what owners should evaluate before proceeding.
Learn why engineering methodology, asset documentation, professional qualifications, and audit support matter when choosing a cost segregation provider.
A cost segregation study identifies the parts of your property that can be depreciated over 5, 7 or 15 years instead of 27.5 or 39. Most studies are complete within 30 days of receiving the property information we need.
Share the property type, purchase price and the date it was placed in service. We estimate the potential benefit before you commit to a study.
We gather the closing statement, depreciation schedule and any construction or improvement records. Larger properties get an on-site inspection with photographs; qualifying 1 to 4 unit residential properties can use our lower-cost modeling approach.
Our team assigns each component of the building and site to its IRS recovery period: 5, 7 or 15 years, or the 27.5 or 39-year building schedule, using recognized construction cost data.
You receive a documented report with depreciation schedules your CPA can use on the return. For property you have owned for years, missed depreciation is generally caught up through IRS Form 3115, without amending past returns.
Across 1,782 completed studies in 47 states, USTAGI has reclassified $307M of property into shorter recovery periods. Here are three recent examples.
Multifamily · Colorado
39% of a $4.93M depreciable basis moved into 5- and 15-year property.
Read the case study →Retail · New Jersey
42% of a $8.02M depreciable basis moved into 5- and 15-year property.
Read the case study →
Hospitality · Colorado · Look-back
25% of a $2.83M depreciable basis moved into 5- and 15-year property.
Read the case study →Read our step-by-step guide to reducing taxes and growing your real estate portfolio!
I Want My Free Guide
Cost Segregation is a strategic tax planning tool that allows real estate owners to accelerate depreciation deductions. Instead of depreciating the entire building over 27.5 years (residential) or 39 years (commercial), we break out components like flooring, cabinets, lighting, HVAC, electrical, and land improvements. These items qualify for shorter recovery periods (5, 7, or 15 years). The result: a larger depreciation expense in the early years of ownership, which reduces taxable income and increases cash flow.
Any investor who owns income-producing real estate can benefit. You can see advantages on all types of properties such as: residential 1-4 unit properties, commercial properties, apartment complexes, etc… Most properties can generate meaningful deductions. If you pay federal income tax and own real estate, Cost Segregation is worth considering.
Virtually all types of real estate qualify, including:
Savings vary by property, but on average 20% to 40% of the property’s basis can be reclassified into shorter depreciation schedules. For example, a $5 million building might generate $1 million to $2 million in accelerated depreciation, translating to hundreds of thousands in immediate tax savings.
The ideal time is in the year the property is placed in service (purchased, built, or remodeled). However, studies can also be done retroactively. If you’ve owned the property for several years, you can file IRS Form 3115 (Change in Accounting Method) to “catch up” on all missed depreciation in the current year, with no amended returns needed.
Most studies are complete within 30 days of receiving the property information we need. Timing depends on how quickly we can arrange the site review and on the completeness of your closing statement, depreciation schedule and any construction records. If you are working against a filing deadline, tell us up front and we will confirm the schedule before you engage.
Yes. The IRS has formally recognized Cost Segregation since 1997. To comply, studies must be detailed and engineering-based, with proper documentation and schedules. Our reports are built to withstand IRS scrutiny.
Tell us a little about you and your property, and a member of the USTAGI team will be in touch shortly.
