Audiences
Who CostSeg SI helps
Owners of commercial and rental property who want their depreciation to reflect what the building is actually made of.
Who we help
Built for property stakeholders
Owners, investors, and operators of buildings used in a business or held for rent, working with their own tax advisers.
Real estate investors
Recently purchased properties, where the purchase price can be allocated to shorter-lived components.
Property owners
New construction, major renovations, and buildings placed in service in earlier years.
Portfolio operators
Multiple properties that benefit from a consistent, documented study process.
Fit
Signs a study may be worth discussing
- You own a building used in a business or held for rent — not a personal residence.
- You recently bought, built, or substantially renovated it, or you have owned it for years and never had a study done.
- The building is a meaningful share of your cost, compared with the land, which cannot be depreciated.
- Faster deductions would actually be usable given your income and tax position.
Fit
When a study may not help much
If you cannot use the extra deductions in the near term, or plan to sell soon, the benefit can be small: depreciation taken on shorter-lived components is generally recaptured as ordinary income when the property is sold. Rules that limit when losses can be used also matter. Your CPA can tell you whether a study fits your plans before you commit to one.
Advisers
Working with your CPA
A study works best when your CPA is involved from the start. We supply the classification and cost evidence; your CPA decides how to apply it. If you are a CPA exploring a study for a client, get in touch directly.