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Tax Planning
Accelerated depreciation · commercial RE

Get a cost segregation study. Accelerate depreciation. Cut taxes now.

Cost segregation reclassifies commercial real estate components for tax depreciation. The IRS standard is 39 years (commercial) or 27.5 years (residential rental) for buildings. Cost seg breaks down: 5-year (carpet, decorative lighting), 7-year (specialized equipment), 15-year (parking lots, landscaping), 39-year (structural). The reclassified components depreciate much faster, generating significant first-year tax deductions. We coordinate with engineering specialists.

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How it works

How we handle Cost Segregation, end-to-end.

Cost segregation reclassifies commercial real estate components for tax depreciation.

1

Property eligibility

Best fit: commercial real estate purchased or constructed for $500K+ (smaller deals do not justify study cost). Office buildings, retail, hotels, industrial, multifamily all eligible. Residential rentals 27.5-year base.

2

Engineering inspection

Certified cost segregation engineer inspects property: structural components, mechanical systems, finishes. Engineering report categorizes each component into IRS recovery periods (5, 7, 15, 39 year).

3

Tax deduction calculation

Reclassified components depreciate faster. Year-1 deduction can be 5-10x the standard straight-line. Combined with bonus depreciation (100% in 2025), can fully expense reclassified components.

4

Form 3115 if existing

For existing properties already on the books, Form 3115 'change of accounting method' lets you catch up missed depreciation in the year of the study. No need to amend prior returns.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent cost segregation pricing.

Government fees pass through at cost. No upsells.

Larger property

$15000
Property $5M-$20M.

Engineering study for properties with basis $5M-$20M. Larger study scope; more detailed component analysis.

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Portfolio study

$29999
Multiple properties.

Multi-property study for real estate investors and developers. Coordinated engineering across portfolio. Significant savings vs. individual studies. Per-property pricing decreases at volume.

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FAQ

About the Cost Segregation Study Service.

How much will cost seg save me?
Depends on property type and basis. Typical: reclassifies 20-30% of basis to shorter recovery periods. On a $2M property, that is $400K-$600K in reclassified basis. With 100% bonus depreciation, $400K-$600K of immediate deductions. Tax savings: $80K-$200K at typical owner brackets.
Can I do cost seg on a property I bought years ago?
Yes. Form 3115 'change of accounting method' lets you catch up the missed accelerated depreciation in the year of the study. No need to amend prior returns. Captures all the years of missed deductions in one year.
What is bonus depreciation?
Allows immediate full deduction of qualified property in the year placed in service. 100% through 2024; phasing down 80% (2026), 60% (2027). Pairs with cost seg to fully expense reclassified components in year 1.
Will the IRS audit?
Cost seg is well-established and accepted by IRS. Engineering-based studies (which is what we coordinate) are highly defensible. The study itself, including engineering report, supports the position. We use ASCSP (American Society of Cost Segregation Professionals) members.
Is residential rental eligible?
Yes. Residential rental properties (apartments, single-family rentals) use 27.5-year recovery instead of commercial's 39-year. Cost seg still applicable to break out shorter-life components.
What about depreciation recapture?
Accelerated depreciation creates recapture at sale (depreciation taken converts back to ordinary income at sale). Net benefit is still positive: time value of money on accelerated deductions exceeds the recapture cost. We model the full lifecycle.
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