Cost Segregation
If you own commercial real estate or have made significant improvements, you may be leaving significant tax deductions on the table. A cost segregation study front-loads those deductions — legally and by the book.
Illustrative Example
Based on a 25% effective tax rate, that's $37,500+ in real cash back in year one. Results vary by property type, basis, and tax situation. Brian will give you a straight read.
Best candidates: Commercial property owners with $500K+ basis — purchased, built, or renovated in the last 15 years.
Talk to Brian about your property →What It Is
The IRS allows you to depreciate different components of a building on different schedules — 5, 7, 15, or 39 years. By default, everything gets lumped into 39 years. A cost segregation study breaks the building apart and identifies components that qualify for accelerated treatment.
The result: a larger deduction in the early years of ownership, when the time value of that cash is greatest.
Of a commercial building's cost can typically be reclassified to shorter-lived asset categories.
More depreciation in year one compared to straight-line 39-year treatment, depending on property type and bonus depreciation availability.
Properties purchased, built, or improved within the last 15 years can be studied retroactively via a catch-up deduction with no need to amend returns.
Who Qualifies
Retail centers, office buildings, medical offices, and professional suites. Significant interior buildouts are particularly strong candidates.
Typically $500K+ basisManufacturing facilities, distribution centers, and flex space. Specialized electrical, plumbing, and process equipment often qualifies for 5-7 year treatment.
Typically $750K+ basisHotels, apartment complexes, and senior living facilities. Interior finishes, landscaping, and site improvements all carry reclassification potential.
Typically $1M+ basisMajor renovations, tenant buildouts, and capital improvements to existing properties — even if you don't own the building outright.
Typically $250K+ in improvementsBought or built property in the last 15 years and never did a cost seg study? A look-back study captures missed deductions in the current year — no amended returns.
Properties placed in service 2010+Brian will tell you in 30 minutes whether your property is worth studying. No obligation — if it doesn't pencil out, he'll say so.
Book a free call →How It Works
Brian reviews your property, basis, and tax situation. You get a straight answer on whether a study makes financial sense.
We coordinate the cost segregation analysis with our engineering partner. You provide documents — we handle the rest.
The study results are reviewed by Brian and integrated directly into your tax return with full documentation.
You receive a complete, defensible study report meeting IRS standards — not a spreadsheet. A real study.
What You Get
From the Principal
Most of the small business owners I've worked with over 41 years never knew this existed. If you own commercial property and your CPA hasn't talked to you about cost segregation, that's a conversation worth having.
"I'm not going to sell you a study that doesn't make financial sense. If the numbers don't work for your situation, I'll tell you that on the call — and you won't owe me anything." — Brian Rodgers, CPA
Get Started
Book a free 30-minute call with Brian. Come with your property address, purchase price, and year acquired. He'll give you a real number.
Prefer email? Reach us at brian@therodgersco.com