What is Cost Segregation?

Your building holds buried treasure. We brings the blueprint and the shovel. Cost Seg America's team uncovers the hidden cash flow buried in your walls, floors, and ceilings—unlocking powerful tax savings and putting more money in your hands when it matters most.

Aerial view of a historic city at sunset, showcasing a mix of residential and commercial buildings with a striking red and orange sky above.
WHAT IS COST SEG?

Buried in Your Building: A Goldmine of Write-Offs!

When you buy or build a commercial property or residential rental, the IRS lets you slowly deduct its cost—over 39 years for commercial, or 27.5 years for residential. But that slow drip delays the very cash flow you could be using right now to grow, invest, or protect your bottom line.

Here is what most investors never hear: your building isn’t just one asset—it is hundreds. Flooring. Lighting. Cabinets. Plumbing. Electrical. Landscaping. Parking lots. All of it. And each of those components qualifies for its own accelerated depreciation schedule.

That is where Cost Seg America comes in. CSA helps property owners like you unlock those front-loaded tax savings hiding in plain sight. Our team uses the top two approaches recognized by the IRS Cost Segregation Audit Technique Guide: 1. Detailed Engineering Approach from Actual Cost Records and 2. Detailed Engineering Cost Estimate Approach. We do not just adjust depreciation—we maximize your cash flow, defer your taxes, and put you in control of your wealth today—not decades from now.

A pedestrian street lined with historic brick buildings under evening lights leads towards a tall church tower in a downtown area, ideal for a Cost Segregation Study.
Not every study is created equal

IRS-Recognized Approaches

The IRS outlines six approaches in its Cost Segregation Audit Technique Guide.
Only two are engineered to maximize write-offs and survive an audit.
Our team uses both—so you keep more, worry less, and sleep well.

Approach #1
Detailed Engineering from Actual Cost Records.
Based on original construction docs
Based on original construction docs
Fully audit-defensible
IRS-recognized
Approach #2
Detailed Engineering Cost Estimate Approach. Used when construction docs are unavailable.
Site inspection + trusted cost databases
Site inspection + trusted cost databases
Still fully audit-defensible
IRS -recognized
Other Approaches to Avoid
Multiply
#3: Survey or Letter Approach
Based on interviews, weak documentation.
Multiply
#4: Residual Estimation – Cherry-picks obvious assets, misses hidden ones.
Multiply
#5: Sampling/Modeling  
Uses software on “similar” buildings, not yours.
Multiply
#6: Rule of Thumb
No inspection or property-specific detail.

Avoid

WHAT IS COST SEG?

Bonus Depreciation — Turbocharge Your
Tax Strategy

Cost segregation is powerful. But combine it with Bonus Depreciation and it becomes a game-changer.

Bonus Depreciation lets you write off assets like carpet, lighting, and landscaping the year they go into service - putting more cash in your pocket faster and fueling your business.

2017 - 2022
100%
2023
80%
2024
60%
2025
40%
2026
20%
HOW WE WORK

Easier Path to
Bigger Tax Savings

Ask Question

Request Your Free Proposal

Send us just the basics—building type, address, and purchase price. That is all we need to craft a custom, no-obligation proposal showing your estimated tax savings. If our team needs anything else, we will reach out. Your complimentary proposal will also include a fixed cost for the actual study.

Sign Document

Sign and Confirm

Once you give us the green light by signing the engagement letter and paying the initial deposit, our team will gather any remaining documents and start the actual cost segregation analysis. Cost Seg America's team keeps the process hassle-free and on track.

Schedule

Schedule the Site Visit

Our team will schedule the site inspection at a time that works for you or your property manager. One of our in-house analysts—who also performs your cost segregation study—will handle the inspection from start to finish. The process is smooth, efficient, and built for consistency and accuracy.

Graph Report

Receive Your Final Report

Once the second study payment is received, you will get a CPA-Ready Final Report—built using one of the IRS’s top two recognized approaches: Detailed Engineering from Actual Cost Records and Detailed Engineering Cost Estimate Approach. The study includes a precise fixed asset schedule and lifetime audit protection, backed by our perfect track record.

WHY COST SEGREGATION?

Want Wealth? Master the Time Value of Money

Take the deductions now—do not wait 39 years. Why? Because a dollar today can be invested, grown, and used to build more. That is the time value of money. It is like choosing between getting $1,000 now or the same $1,000 slowly over decades.

CLIENT SUCCESS

Real Clients. Real Results.

Smart, hard-working folks across the U.S. are reclaiming tax dollars hiding in their properties. No loopholes—just smart strategy and honest savings. Hear their stories firsthand.

I have researched other cost segregation companies and find that they leave money on the table whereas the Cost Seg America team counts everything and usually finds 10-15% of the purchase price more. Jim Dougherty and the CSA team are very knowledgeable, responsive and on top of their game.
Laurie A.
Business Advisor
Cost Seg America went above and beyond to ensure that not only did I receive the best cost segregation study that I could but his customer service and attention to detail second to none. I would highly recommend Jim and CSA for any future Cost segregation study you may need. 10/10!!
Frank C.
Property Owner
Working with Cost Seg America was a great experience. ... I decided to have two property studies done and it definitely helped me save money on my taxes.
I would highly recommend this company and plan to use them again in the future!
Matt D.
Commercial
Real Estate Broker
“Cost Seg America helped me unlock $240,000 in deductions from a building I already owned for three years. My CPA couldn’t believe it. Now I’ve got the capital to expand.”
Anonymous
Michigan
Commercial Property Owner

Got Questions?
We’ve Got Answers - and Big Benefits.

Discover how cost segregation can transform your tax strategy and put serious cash back in your pocket. Dive into our FAQs and see what you have been missing.

Can my CPA do a cost segregation study?

Not really. CPAs are not trained engineers—and cost segregation is an engineering-based analysis. Your CPA manages your overall tax strategy; our team provides the detailed building analysis. When your CPA and our team work together, you capture every allowable deduction with a rock-solid, audit-ready cost-segregation study—maximizing your savings.

How much does a cost segregation study cost?

Fees depend on the building type and engineering complexity; once basic property details are in hand, our team issues a fixed-fee quote—never a percentage of your refund. Straightforward structures cost less, while intricate or multi-use facilities require a higher investment. Each proposal includes an estimated first-year tax benefit so you can judge the ROI before committing.

Why choose Cost Seg America?

Our team delivers Detailed Engineering Studies that follow IRS Cost Segregation Audit Technique Guide Approaches #1 and #2, typically shifting an extra 6–15 % of the building’s purchase price—excluding land—into shorter-life asset classes, outperforming most providers. Expect larger, faster deductions, full audit defense at no extra cost, and a partner CPAs have trusted for 23 years.

When can you do a cost segregation study?

The ideal moment is the first tax year after purchase, but any property held for fewer than ten years can still “catch up” on missed depreciation with a single Form 3115 adjustment—no amended returns needed. Even buildings owned longer may qualify after major renovations or tenant improvements. Our team secures the full tax benefit whenever you start.

How does a cost segregation study work?

A cost segregation study breaks a commercial or residential rental building into its individual components—lighting, flooring, wiring, landscaping, and more—and moves those items from 27.5- or 39-year schedules into 5-, 7-, or 15-year classes. The result is front-loaded deductions that boost early cash flow and defer taxes. Our engineering team applies IRS Audit Technique Guide Approaches #1 and #2 to identify every eligible component, ensuring maximum depreciation, full audit protection, and increased cash flow.

Still have questions?

Skeptical?
So were many of our most loyal clients.
A no-obligation proposal helped them move forward with confidence.