Cost Segregation

Unlock the deductions hiding in your building. Your way.

Most properties depreciate far too slowly — leaving real cash on the table every year. A cost segregation study fixes that. And you choose how it's done: a traditional engineering firm, our AI specialist Todd, or both.

0asset lives recovered from 39
0of basis often accelerated
Year 1bonus depreciation in play
Three Ways To Get It Done

Pick the path that fits you.

Same goal — bigger deductions, fully defensible. You decide the speed, the cost, and the level of sign-off.

4–8 weeks
The Traditional

An Engineering Firm

The classic gold standard.
  • On-site engineering inspection
  • Engineer-signed report
  • Highest level of audit authority
Best for — large, complex, or high-dollar properties.
Recommended
days
Best Of Both

Todd + Engineer

Speed first, then the stamp.
  • Todd builds the full study fast
  • An engineering firm validates & signs
  • Speed and the strongest authority
Best for — owners who want maximum confidence without the wait.
days
The Modern Way

Todd, our AI

A full study in days, not months.
  • Documented to the IRS's own guide
  • Line-by-line legal justification
  • A fraction of the time & cost
Best for — busy owners who want it done now.
Either Way, You Get

The same powerful result.

Bigger deductions now

Move 20–30% of basis into 5, 7, and 15-year lives.

Year-1 bonus

Accelerate much of it into the first year, sized to your placed-in-service date.

§

Built to defend

Every reclassified item carries its legal justification.

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Real liquidity

Less tax today — capital you redeploy into the next deal.

T

Meet Todd.

Todd is our AI cost-segregation specialist. He breaks your property down component by component, assigns each its fastest defensible tax life, and writes the legal backing for every call — then hands you a complete, audit-ready study in days. When you want the engineer's signature on top, Todd does the heavy lifting first so the firm just validates and signs.

1

You send the basics

Address, purchase or build details, and any documents you have.

2

Todd engineers the breakdown

Every component sorted into its correct, defensible recovery life.

3

He justifies every line

Legal tests and case law attached to each reclassified item.

4

You get the report

A clean study, plus a plain-English summary of where you stand.

DetailHow Todd makes a study hold up+

Todd is built backward from the way the IRS examines a study — so every line is ready before the return is ever filed:

01
Engineered breakdown

Real components, defensible lives — documents where you have them, recognized cost data where you don't.

02
Whiteco six-factor test

Each reclassification carries the legal test that proves it's personal property, not building.

Whiteco · IRS ATG
03
Case-law citations

The governing authority sits beside each call — the same cases an examiner uses.

HCA v. Commissioner
04
Receipt vs. estimate flag

Every line marked invoice-backed or estimate-supported, so you always know where you're strongest.

05
Bonus & recapture math

Deterministic schedule, placed-in-service accurate, with your sale-time recapture quantified up front.

§168(k) · §1245
06
Audit-risk summary

Before you file, Todd tells you where you're solid and where you're thin.

For The Curious

Want to go deeper?

Most people don't need this. If you do, it's all here — tap to open.

HowHow the IRS actually audits a study+

The IRS doesn't challenge the idea of cost segregation — it's settled law. It challenges the quality of the study and the paperwork. Here are the six steps an examiner takes:

Step 01
Demand the report

A one-page "estimate" with no engineering, photos, or invoices is thrown out on sight. A full report ends this step in your favor.

Step 02
Check the method

Examiners follow their own Audit Techniques Guide and look for a credible engineering-based approach.

IRS Cost Segregation ATG
Step 03
Re-classify big items

The real fight: is an asset slow "building" or fast personal property? The legal test should already be on the page.

Whiteco six-factor test
Step 04
Lean on case law

The framework traces to Hospital Corp. of America. Strong studies cite the governing cases beside each call.

HCA, 109 T.C. 21
Step 05
Tie costs to receipts

Do the numbers match what you paid? Missing documentation gets disallowed. Every dollar should trace to an invoice or a labeled estimate.

Substantiation · §6001
Step 06
Look ahead to the sale

Fast deductions can return as recapture when you sell. A good study quantifies that up front.

§1245 recapture
SampleWhat the finished report looks like+

You receive a complete study: a methodology section matched to the IRS guide, a component-by-component schedule (each flagged receipt or estimate), the legal justification beside every reclassified item, full depreciation and bonus tables, your recapture outlook, an audit-risk summary, and a documentation appendix tying invoices and photos to the components they support.

TimingCan I do this on a building I already own?+

Yes. You don't have to amend old returns — a "look-back" lets you catch up all the missed depreciation in a single year using an accounting-method change. Best done with your CPA; we'll hand them everything they need.

Straight Talk

No study — by Todd, by an engineer, by anyone — is guaranteed audit-proof. Any honest firm will tell you the same. What makes deductions defensible is a study built the way the IRS examines one: fully documented, grounded in the guide and the case law, with every weak spot disclosed to you up front. That's what we deliver — and if you want the engineer's signature on top of it, that's the "both" option. Partners, not brokers.

Trust · Growth · Wealth

See what your property is really sheltering.

Send the address and the details — we'll show you the deductions hiding in the building, and you pick how you want it done.