Engineering-based cost segregation studies for residential, multifamily, and commercial property. CPA-certified and audit-ready.
Fig. 1 · Specimen study, first page
We analyze every component: electrical, plumbing, flooring, cabinetry, fixtures, landscaping, to find assets eligible for accelerated depreciation.
Those components move from the 27.5- or 39-year schedule to 5, 7, or 15-year recovery periods per IRS guidelines. This is where the savings come from.
You claim the accelerated depreciation on your income tax return. The savings hit your bottom line this year, not decades from now.
5-year fixtures & finishes
27.5-year structure
15-year site improvements
A tax strategy that accelerates depreciation on your property, putting money in your pocket now, not in 27 years.
Fig. 2 · Cumulative deductions on one property. The total is unchanged; the timing is not.
A look-back study lets you claim missed depreciation without amending your return. Whether you closed last month or a decade ago, you qualify.
How look-back worksEvery classification reviewed and certified by a CPA. That is what makes a study hold up.
IRS Audit Techniques Guide standard
Four steps, about two weeks.
We send a short list of what we need: closing statement, plans, assessment.
We inspect the property and document every component.
Unit-cost estimating on each classified asset. This is the engineering cost method.
An audit-ready report, plus Excel schedules that load into your fixed asset system and return.
Yes. Cost segregation is a well-established tax strategy backed by IRS guidelines. Every ClearSeg study is CPA-certified.
Depreciation is a deduction on your federal income tax return, not your property tax bill. Cost segregation increases your deductions in the current tax year, which reduces your taxable income.
If you or your spouse qualify as a Real Estate Professional under IRS rules, the depreciation can offset W-2 income. Otherwise it offsets rental income and carries forward. Talk to your CPA.
No. You can do a cost segregation study on a property you've owned for years. A "look-back" study lets you claim missed depreciation without amending prior returns.
Yes. We perform at least one inspection of the premises. It is part of the engineering cost method, and it is what separates a real study from a desktop estimate.
No. Cost segregation is IRS-recognized and, when performed correctly, fully compliant. Our studies follow the IRS Cost Segregation Audit Techniques Guide.
About two weeks from the time we have your information. Larger properties can take longer, and we tell you up front.
Depreciation recapture (IRC Sections 1245 and 1250) applies at sale and can offset part of the benefit. We run both numbers first, and we will tell you if a study does not make sense.
Purchase price and address to start. Closing disclosure, appraisal, assessment, and plans if you have them.
Very little. We deliver the study and asset schedule ready to apply to your return, and we will walk your preparer through it.
Questions? Call (732) 500-0398 or email info@clearseg.com.