Is a Cost Segregation Study Worth Investigating?

Quick answer

A cost segregation study analyzes property components for depreciation treatment. Whether acceleration helps depends on your basis, tax position, use of deductions, study costs and future disposition.

Questions before commissioning a study

  • What is the depreciable basis after excluding land?
  • Can I currently use accelerated deductions?
  • What methods, deliverables and professional qualifications are involved?
  • What are the fees, implementation needs and recapture implications?
  • How are prior returns and accounting-method changes handled?

This site does not estimate dollar savings from property price alone.

Primary source

IRS Publication 946: Depreciation. Confirm how it applies to your tax year and circumstances before acting.