It is a detailed, IRS‑aligned analysis performed by engineers to reclassify building components into shorter‑life asset classes, accelerating depreciation and increasing cash flow. It identifies both personal property and land improvements that qualify for 5‑, 7‑, or 15‑year lives instead of the standard 39‑year commercial schedule.

The IRS Cost Segregation Audit Techniques Guide emphasizes that studies must be performed by qualified engineers to substantiate allocations. Using rule‑of‑thumb or non‑engineering studies risks IRS disqualification.

Solution engineers conduct a site inspection, review construction documents, and identify components such as specialized electrical systems, decorative finishes, and exterior site work that qualify for shorter recovery periods. The process is fully managed by solution partner from feasibility through to CFO / CPA ready reporting.

Our solution partner has a proprietary tax assessment system that can run a 60‑second feasibility preview to estimate accelerated depreciation potential based on property details such as type, cost basis, and placed‑in‑service date. Most commercial properties qualify.

A typical engineering‑based study takes 4–8 weeks from engagement to final report, with site visits usually lasting 1–2 days. Our solution partner coordinates timing to meet tax‑filing deadlines.

Typically this would be purchase documents, construction invoices, blueprints, ALTA surveys, and improvement records to support engineering take‑offs and cost allocation. These records allow the solution engineers to quantify components and substantiate classifications. Our solution partner will help facilitate uploads of all required information into their system, run the assessment and generate documentation required for the IRS.

Benefits vary by property type and any improvements that have been made. It is possible to unlock hundreds of thousands of dollars in first‑year savings by accelerating depreciation.

Yes. The tax management platform supports look‑back studies to enable you to claim missed depreciation in the current year without having to amend prior returns.