Cost Segregation Study

Cost segregation is often marketed as a tax optimization technique.

We practice it as a capital recovery discipline.

Our work integrates valuation economics, engineering-based asset classification, and appraisal discipline to produce depreciation outcomes that are defensible, auditable, and aligned with how capital is actually deployed and consumed across infrastructure, industrial, and commercial assets nationwide.

We do not sell templates.

We govern capital recovery under uncertainty.

We deliver cost segregation for capital-intensive, system-complex assets across the United States, including:

• Infrastructure & Production-Driven Assets
  Manufacturing, energy, power-intensive facilities, and production platforms
   
• Industrial & Logistics
  Warehouses, distribution centers, process-integrated facilities
   
• Commercial Real Estate
  Office, hospitality, retail, mixed-use, and large tenant-improvement programs
   
• Multifamily & Portfolio Assets
  Stabilized, value-add, and portfolio-scale standardization
   

Our practice is structured for assets where basis integrity, system complexity, and audit scrutiny materially affect recoverability.

In capital-intensive real estate, depreciation outcomes are not driven by square footage.
They are driven by:

• How systems are engineered
   
• How capital is staged and deployed
   
• How assets are economically consumed
   
• How infrastructure supports production, power, and operations
   

Cost segregation, when properly executed, aligns tax recovery with economic reality — not architectural form.

We analyze how building and site systems are designed, installed, and function, including:

• Electrical, mechanical, and control systems
   
• Process-support and production-linked infrastructure
   
• Structural supports tied to systems and operations
   
• Utility, power, and distribution architectures
   

Assets are classified by economic function, not visual appearance.

Before any depreciation classification, we apply valuation discipline to:

• Reconstruct total project basis
   
• Abstract non-depreciable land using market and residual techniques
   
• Separate site improvements correctly
   
• Reconcile all allocations internally
   

This prevents distortion caused by improper shell or land allocation.

Only after engineering identification and capital allocation do we classify assets into recovery lives based on:

• IRS definitions and applicable guidance
   
• Functional relationship to operations and production
   
• Physical and economic depreciation characteristics
   

Acceleration is pursued only when supported by function, documentation, and law.

All studies are internally reconciled to ensure:

• Total allocations match capitalized project costs
   
• No artificial inflation of qualifying property
   
• Logical consistency across asset classes
   
• Audit-ready documentation suitable for Forms 3115 and related filings
   

Our nationwide practice supports complex depreciation frameworks, including:

• 100% Bonus Depreciation (methodology governs outcome)
   
• Qualified Improvement Property (QIP)
   
• Qualified Production Property (QPP) (production-linked, time-limited, risk-aware)
   
• Step-Up Basis Cost Segregation (IRC §1014)
   
• Section 1031 Basis & Capital Continuity
   
• Apartment & Portfolio-Scale Standardization
   

Each is executed as a classification and basis discipline, not a standalone tax tactic.

Our engagements are structured to withstand:

• IRS examination
   
• CPA and auditor review
   
• Transactional due diligence
   
• Institutional governance standards
   

This platform is built for owners, sponsors, family offices, and advisors who value:

• Defensible capital recovery
   
• Consistent portfolio treatment
   
• Long-term credibility
   
• Enterprise-level capital discipline
   

Cost segregation, when executed correctly, is not a tax strategy.
It is a capital recovery discipline grounded in valuation economics, engineering understanding, and appraisal rigor.

Our nationwide practice serves infrastructure, industrial, and commercial real estate where the cost of being wrong is material.

We offer a no-fee preliminary feasibility discussion to determine whether a full cost segregation study is appropriate, defensible, and economically justified for your asset.

👉 Request a Preliminary Cost Segregation Review