CASE STUDY

Regional Shopping Mall

Southern Texas

Highlights

In 2022, this investment firm acquired a $13.7 million shopping mall in Texas and turned to Cost Seg America to maximize depreciation. Our team applied IRS Approach #1—the Detailed Engineering Cost Estimate Approach—to claim more than $4 million in first-year deductions—more than 11 times the standard $350,803 write-off.

By reclassifying 28% of the property, we turned decades-long depreciation into immediate cash flow, freeing up capital for acquisitions, debt reduction, and reinvestment. A trusted partner for over seven years, Cost Seg America continues to deliver results that drive real growth.

What sets us apart isn’t just the numbers—it is how we get them. We walk every property, document every component, and deliver audit-ready studies that hold up under scrutiny. Our clients do not just save money—they gain a strategic advantage that helps them grow faster, invest smarter, and sleep better at night knowing their tax strategy is built on rock-solid ground.

Statistics

$13,681,337

Cost Basis

$350,803

First-Year Depreciation (Straight-Line)

$4,051,665

First-Year Depreciation (Cost Seg + 100% Bonus)

$3,798,254

Total Accelerated Depreciation

28%

Depreciation Accelerated

Approach

Cost Seg America used the IRS’s Approach 2 — the Detailed Engineering Cost Estimate Approach outlined in the IRS Cost Segregation Audit Technique Guide — to accurately classify assets and maximize allowable depreciation.
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‍Breakdown of Reclassified Assets:

Comprehensive Data Collection – Our team gathers all relevant documents, including settlement statements, site plans, and architectural drawings, to create a complete asset profile.
On-Site Inspection – Our analysts conduct a detailed inspection to identify every critical component of the property.
Precise Asset Reclassification – Our team categorizes property components according to IRS guideline, ensuring compliance while accelerating depreciation schedules.
Optimized Depreciation Application – Our team's analysts apply MACRS to maximize tax deferrals and enhance cash flow.
Seamless CPA Collaboration – Our cost segregation report is delivered audit-ready, ensuring smooth integration into tax filings with full IRS defense.

With Cost Seg America, tax strategy is not just about compliance—it is about unlocking capital and fueling growth.
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💡 How This Property Was Reclassified

🟦 39-Year Property: $9,883,083 (71.4%)

🟩 15-Year Property: $1,175,610 (9%)

🟨 7-Year Property: $13,938.60 (0.7%)

🟥 5-Year Property: $2,608,705 (19%)

Breakdown of Reclassified Assets

39-Year Property

Structure

15-Year Property

Land Improvements

7-Year Property

Specialty Equipment

5-Year Property

Short-Life Assets

Summary

By partnering with Cost Seg America, this client claimed more than $4 million in first-year depreciation—over 11x what straight-line would have allowed. Our team applied IRS Approach #2—the Detailed Engineering Cost Estimate Approach—to reclassify 28% of the property into short-life assets, unlocking substantial tax savings and immediate cash flow.

Cost segregation is a proven strategy used by the most sophisticated real estate investors to improve cash flow, scale faster, and reduce tax liability. If you own commercial or residential rental property and haven’t done a study, now is the time. We deliver audit-ready results that help you move forward with confidence.

At Cost Seg America, we are here to help you protect what you have purchased, maximize what is possible, and move forward with confidence.

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