Erica Seppala

For property owners, cost segregation can help save thousands of dollars through accelerated depreciation. The required cost segregation study to realize these savings can be expensive, so can you bypass this expense with DIY cost segregation? 

An approach (or methodology) of cost segregation is the method used to allocate total project costs to property assets. These approaches rely on construction and cost documentation, estimates, sampling, or a combination of these things to accurately perform a cost segregation study.

A cost segregation company specializes in assessing property components for accelerated depreciation, which minimizes tax liabilities for real estate owners. Some companies may also offer additional tax credit services to help businesses save even more on their income tax returns. In this post, we’ve selected the best cost segregation companies to help you accelerate depreciation on your commercial or investment property.

Pros Free feasibility analysis Uses an engineering-based approach to cost segregation Decades of experience in cost segregation Cons No additional tax services Lack of client reviews What Is Duffy+Duffy? Duffy+Duffy Cost Segregation Services, LLC is a leading cost segregation firm in the U.S. The company’s team of CPAS, estimators, and engineers conduct cost segregation studies […]

Engineered Tax Services is a specialty tax firm that has helped clients claim millions of tax credits and incentives since the company’s establishment in 2001. Engineered Tax Services boasts a team of accountants, attorneys, engineers, and scientists to help businesses with cost segregation, research and development (R&D) credits, employee retention tax credits (ERC), and other tax services.

Pros Free feasibility analysis for cost segregation Free tax calculators Numerous services & software to claim tax credits & incentives Tax services available nationwide Excellent public reputation Cons Fees not disclosed online (not uncommon in the industry) What Is KBKG? KBKG is a tax consulting firm that has helped its clients claim over $1 billion […]

A cost segregation study gathers information that is used to maximize depreciation on commercial and investment properties. A cost segregation study gives an in-depth look at various components of the property (everything from appliances to landscaping) to determine costs that can be depreciated over a shorter period of five, seven, or 15 years. A cost segregation study is also crucial for property owners who want to recover costs more quickly in the first year with bonus depreciation.

Cost segregation is a tax strategy that property owners can use to accelerate the depreciation of a commercial or investment property. Cost segregation allows for certain components of the property to be depreciated over a shorter timeline of five, seven, or 15 years. This accelerated depreciation can lower a property owner’s tax liability and increase cash flow.

The easiest and most accurate way to do a cost segregation study is by hiring a cost segregation company. Your cost segregation team should include CPAs, engineers, and other experts. It is possible to do a cost segregation study yourself; however, we don’t recommend going this route.

CSSI has a solid reputation among property owners for its cost segregation services. The company places an emphasis on compliance and following regulations as it performs its cost seg studies, which is key to avoiding mistakes on your federal tax return and navigating an IRS audit.