What Is Cost Segregation?
(Unlocking Tax Savings for Property Owners)
📌 Cost segregation is a tax strategy that breaks down your building into different parts (like qualified flooring, cabinetry, and landscaping) so they can be depreciated faster. That means more tax savings today, not 27.5 or 39 years from now.
📌 Why It Matters
💵 Increase Cash Flow: Accelerate deductions to free up money sooner.
📊 Maximize Deductions: Reclassify parts of your property into 5, 7, or 15-year categories.
✅ Tax Planning Tool: Align with your CPA’s strategies for lowering taxable income.
📌 Example
A $1 million property may reclassify $200k–$300k into shorter-life categories.
At a 25% tax rate, that’s $50k–$75k in year-one tax savings.
📌 The Process
① Engagement – Quick consultation to confirm eligibility
② Data Gathering – Collect available blueprints, costs, and property records
③ Site Visit / Virtual Review – Engineers analyze property details to dete rmine what is needed
④ Tax Reclassification – Assets categorized into shorter life spans
⑤ Cost SegregationFinal Report and Results – IRS-ready study for your CPA
📌 Contact Segvia Consulting
Ready to see if your property qualifies?
📘 Glossary
Through our cost segregation analysis, we break down your property into detailed components. The terms below represent the asset categories most often reclassified to unlock accelerated tax savings.
5-Year Property – Short-life assets like qualified appliances, flooring, and cabinetry.
7-Year Property – Certain office furniture and equipment.
15-Year Land Improvements – Exterior items such as parking lots, sidewalks, landscaping, and fencing.
27.5 or 39-Year Property – Standard building structure such as foundations, walls, roof, plumbing, and HVAC
Bonus Depreciation – A tax rule that allows you to deduct a large percentage of qualifying assets in the year they’re placed in service.
Partial Dispositions – A tax strategy allowing you to write off the remaining value of replaced building components (like tearing out an old roof).