Cost Segregation
About
What Is Cost Segregation?
Cost Segregation is a time-tested tax planning strategy that enables real estate owners or manufacturers to accelerate depreciation deductions by identifying and reclassifying specific components of a building into shorter asset lives, typically 5, 7, or 15 years instead of the standard 27.5 or 39 years. This approach can significantly reduce taxable income and increase immediate cash flow.
The strategy was formally recognized by the IRS following the landmark Hospital Corporation of America (HCA) case in 1997, which helped establish Cost Segregation as a legitimate and, now, widely accepted practice.
Today, it remains one of the most powerful strategic tools available to commercial property owners, real estate investors, and business owners who own or renovate real estate.
Whether the property is newly constructed, recently purchased, or improved through renovation, a Cost Segregation study allows owners to unlock immediate tax savings that would otherwise be stretched over decades, bringing forward valuable deductions when they’re needed most.
Benefits
The Smart Way to Maximize Your Real Estate Investment.
Cost Segregation doesn’t just lower your tax bill, it puts capital back in your business when you need it. These studies often produce 6-figure savings or more for qualifying buildings and portfolios.
Accelerated Depreciation = Increased Cash Flow
Reclassifying assets allows for faster deductions and greater cash in-hand during the early years of ownership.
Shortened ROI on Property Investments
Faster tax savings help recover your investment sooner and improve overall project profitability.
Federal & State Income Tax Deferral
Reduce taxable income and delay tax payments, freeing up capital for reinvestment or debt reduction.
Improved Cash Liquidity for Growth
Reclaimed tax dollars strengthen your working capital fueling expansion, hiring, or upgrades.
Retroactive Deductions via Catch-Up
Eligible properties can claim missed depreciation from prior years in a single current-year adjustment.
IRS Recognized and Fully Defensible
Cost Segregation is backed by tax court precedent and detailed IRS guidelines, making properly documented claims audit-ready.
Why Wait to Depreciate? Maximize Your Savings Today!
Take action now to maximize your property’s tax-saving potential.
What properties qualify?
If You Own It, We Can Likely Study It.
Most income-producing buildings can benefit from a cost segregation study if it’s new construction, recently acquired, or even underwent renovations. If you’ve spent $500,000 or more on real estate, you’re likely sitting on untapped tax savings.
Common Qualifying Properties:
Commercial Office Buildings & Warehouses
New Construction Projects (Commercial or Residential Income-Use)
Manufacturing Plants & Industrial Facilities
Hotels, Resorts & Hospitality Venues
Auto Dealerships, Service Centers & Repair Shops
Retail Stores, Shopping Centers & Restaurants
Multifamily Properties & Apartment Complexes
Renovated or Expanded Existing Structures
How it works
Our Process: Expert-Driven and Turnkey.
We start with a brief, targeted interview to understand your property and improvements. Our team works around your schedule to minimize disruption while identifying key areas for potential reclassification.
Our in-house tax attorney and tax specialists will request and review architectural drawings, construction invoices, depreciation schedules, and other relevant documentation to support the analysis.
Once the study is complete, we prepare a fully compliant cost segregation report. We can deliver this directly to your CFO, CPA, Controller, or any designated team member to ensure seamless integration into your tax filing process.
We remain available to answer questions and assist your tax team in applying the findings of the report, helping you implement the depreciation adjustments with confidence.
Our commitment doesn’t end with delivery. We provide continued access for clarifications, documentation requests, or support for future acquisitions and projects.
Why PTG For Cost Segregation?
A Better Standard.
When it comes to Cost Segregation, accuracy, defensibility, and experience aren’t optional, they’re essential. We don’t deliver cookie-cutter studies or rely on offshore teams. Every report is reviewed by our expert tax specialists and attorneys and built to withstand IRS scrutiny. From discovery to delivery, we operate with transparency, precision, and a commitment to maximizing your return without exposing your business to risk.
Pre-Qualification Review at No Cost
Full Audit Representation Included
No Upfront Fees. Pay Upon Report Delivery
Tax Attorney Led Review
Claim What's Already Yours
Don’t leave money on the table! Accelerated depreciation can free up cash flow immediately and retroactive savings are still within reach.
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Prime Tax Group, LLC
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Contact Info
- +1 (512) 853-9888
- info@primetaxgroup.com
Corporate Office:
3960 Howard Hughes Parkway, Suite 500 Las Vegas, NV 89169
Austin Office:
2101 S I-35, Suite 105 Austin, TX 78741