Engineering-Based Cost Segregation Studies
Turn your warehouse multifamily building STR retail center office medical office into tax deductions.
If you own an investment property, you need a cost segregation study. TDA delivers IRS-compliant, engineering-based studies that accelerate your depreciation, unlock 100% OBBBA bonus depreciation, and put more cash back in your pocket in year one.
Our clients claim an average of $84,000 in Year 1 · $315,000 over 10 years.
Based on TDA studies of $1M–$3M investment properties under OBBBA 100% bonus depreciation.
Engineering-based methodology
The IRS-preferred approach per the Cost Segregation Audit Techniques Guide.
OBBBA-ready
OBBBA-ready Studies model 100% bonus depreciation under current law.
Audit defense included
Workpapers and methodology stand up to IRS scrutiny
Free feasibility
No-cost projection before you commit to a study.
From the team
What is cost segregation? Our COO explains, in plain English.
If you’ve ever heard the term “cost segregation” and wondered what it actually does — or whether it applies to your property – this is the explainer you want first.
- What “reclassification” means in plain terms
- The math on a typical commercial property
- How OBBBA bonus depreciation amplifies the benefit
- Who should and shouldn’t consider a study
Residential
Commercial office
Retail
Warehouses
Agricultural
Hotels & motels
Childcare centres
Residential
Commercial office
Retail
Warehouses
Agricultural
Hotels & motels
Childcare centres
Residential
Commercial office
Retail
Warehouses
Agricultural
Hotels & motels
Childcare centres
Residential
Commercial office
Retail
Warehouses
Agricultural
Hotels & motels
Childcare centres
Residential
Commercial office
Retail
Warehouses
Agricultural
Hotels & motels
Childcare centres
5.0 on Google
4.9 on Trustpilot
5,000+
Studies completed
$500M+
Deductions
identified
25+
Years experience
IRS
Compliant
methodology
Find out what your property could save you. Free in 4 business hours.
No commitment. We model the exact deductions before you spend a dollar.
How it works
Three steps to your first-year tax deduction
From free feasibility to filed return – we handle the engineering so your CPA can claim the savings.
1
Qualify your property
Send us the address and purchase price. Within 4 business hours we deliver a free feasibility report showing projected first- year deductions and ROI.
2
Engage TDA
Engineering team performs site inspection, analyses construction documents, and itemises building components against MACRS class lives and OBBBA bonus depreciation rules.
3
Claim maximum deductions
You receive a fully audit-defensible study with engineering takeoffs, RSMeans cost data, and a Form 3115 for look-back catch- up. Your CPA files; you keep the cash.
20 – 35%
of cost basis typically reclassified
100%
bonus depreciation under OBBBA
5 – 12%
NPV tax savings, % of purchase price
$0
cost for the upfront feasibility
analysis
Why now
OBBBA brought 100% bonus depreciation back. Cost segregation is how you use it.
The One Big Beautiful Bill Act restored 100% bonus depreciation for qualifying property acquired and placed in service on or after January 19, 2025. That means every dollar of 5-, 7-, and 15-year property identified in a cost segregation study can be deducted in year one — instead of dragging out over 27.5 or 39 years.
For a $2 million commercial building, that often translates to $300,000–$600,000 of accelerated first-year deductions, depending on building type and structure.
Without cost segregation
$51,282
Year-one depreciation on a $2M commercial property (39-year SL)
With cost segregation + 100% bonus
$451,282
Year-one depreciation when 25% of basis is reclassified to short- life property
Federal tax saved at 37%
~$148,000
Cash kept in your pocket, reinvestable today
Our process
Four steps from feasibility to filed return
Engineering-based cost segregation isn’t a spreadsheet. It’s a defensible study built on physical inspection, construction documents, and current IRS guidance.
Free feasibility
Send us the property address, purchase price, and date placed in service. We model expected reclassification and projected first- year deduction at no cost.
Engagement & data collection
We collect closing documents, depreciation schedule, construction drawings, and any TI/CapEx history. A site inspection is scheduled.
Engineering analysis
Our team itemizes building components, applies MACRS class lives per IRS audit guidance, and quantifies costs using accepted estimating standards.
Report & tax filing
You receive a complete, audit- defensible study. For look-back studies we deliver Form 3115 with a Section 481(a) adjustment your CPA files in the current year.
Engineering-based
IRS-preferred
Per the Cost Segregation Audit Techniques Guide, an engineering-based study is the most defensible methodology.
25+ years experience
5,000+ studies
TDA has delivered over 5,000 cost segregation studies and identified more than $500M in accelerated depreciation deductions for US property investors.
Full audit defense
Included
Workpapers, photos, and methodology delivered in a format your CPA and the IRS expect to see.
Why TDA
Built by depreciation specialists. Defended like our reputation depends on it.
TDA is a depreciation-only firm. We don’t sell software, audits, or tax prep — we do one thing, the right way, with engineering rigor and tax-code precision.
- Engineering-based methodology. Component-by-component itemization with site inspection and construction document review — the gold standard the IRS itself recommends.
- Current with OBBBA. Studies model the restored 100% bonus depreciation and the interaction with Section 179, QIP, and the real estate professional / STR rules.
- CPA-ready deliverables. Asset detail by MACRS class, depreciation schedule by year, Form 3115 package for look-back studies — everything your tax preparer needs.
- Free, no-obligation feasibility. We tell you upfront whether a study makes economic sense for your property. If it doesn't, we say so.
Case studies
How we’ve transformed our clients’ tax deductions
Real outcomes across asset classes — numbers shown are typical mid-range results for OBBBA-era studies.
Multifamily
$680,000
first-year deduction
Class B garden apartment · $4.2M basis · 28% reclassified
A 96-unit garden-style multifamily in Texas. Site-improvement-heavy lot drove an above- average reclassification. Owner saved ~$252K federal tax in year one at a 37% bracket.
Short-term rental
$118,000
first-year deduction
Lakefront STR · $640K basis · 31% reclassified
An Airbnb in the Smokies with extensive deck, hot tub, and decorative finishes. STR loophole let the owner offset W-2 income directly — ~$44K of cash tax saved.
Commercial office
$1.4M
first-year deduction
Class A office · $9.8M basis · 22% reclassified
Suburban Class A office with structured parking, dedicated electrical, and high-end TI buildouts. Look-back to 2023 acquisition added a Section 481(a) catch-up of $310K.
Hospitality
$2.1M
first-year deduction
Limited-service hotel · $7.5M basis · 36% reclassified
A 110-key hotel in Florida. FF&E plus decorative finishes drove one of our highest reclassification ratios — ~$777K cash tax saved.
Warehouse / industrial
$540,000
first-year deduction
Last-mile distribution · $3.6M basis · 18% reclassified
Tilt-up industrial in the Inland Empire. Heavy paving, racking, and dedicated process electrical. Lower % reclassification but very high absolute dollars.
Medical office
$390,000
first-year deduction
MOB suburb · $2.4M basis · 27% reclassified
A 22,000 sq ft medical office. Specialty plumbing, dedicated electrical, and lab/imaging buildouts created one of the richest reclassification profiles we see.
Real investors, real savings
The kind of clients TDA works with every day
From single-property landlords to multi-state syndicators — we deliver studies that hold up to IRS scrutiny and put real cash back in their pockets.
Trusted by
CPAs, syndicators, and property owners across the country
TDA partners with CPA firms, real-estate syndicators, and individual investors — we co-
brand reports and offer a priority-service partner program for referrers.
See what cost segregation could be worth on your property.
Send us the address + purchase price. We come back with a full feasibility within 4 business hours — no obligation.
Frequently asked
Quick answers about cost segregation
What is a cost segregation study?
A cost segregation study is an engineering-based analysis that reclassifies components of a building from 39-year (commercial) or 27.5-year (residential rental) real property into 5-, 7-, and 15-year MACRS class lives. The reclassification accelerates depreciation deductions, reducing current-year federal taxable income for property owners.
How much can I save with a cost segregation study?
Typical commercial properties reclassify 20–35% of cost basis into shorter recovery periods. Combined with 100% bonus depreciation under OBBBA, that produces first-year deductions in the range of 6–12% of purchase price. Net present value of the tax savings commonly ranges from 5% to 12% of acquisition cost depending on building type and your tax bracket.
Does OBBBA really restore 100% bonus depreciation?
Yes. The One Big Beautiful Bill Act restored 100% bonus depreciation on qualifying property acquired and placed in service on or after January 19, 2025. Cost segregation is the mechanism that identifies which components of a building qualify, making it more valuable than at any time since 2022.
Can I apply cost segregation to a property I already own?
Yes. A look-back study captures missed depreciation from prior years through an automatic accounting method change on IRS Form 3115, claimed as a Section 481(a) adjustment in the current year — without amending prior returns.
How long does a study take?
Most studies are delivered within 3–5 weeks of engagement. Rush turnaround is available for year-end or transaction deadlines.
Find out what cost segregation is worth on your property
Send us the address and purchase price. We’ll come back with a no- obligation projection of your first-year deduction and net present value tax savings.
Engineering-based cost segregation studies for U.S. commercial real estate and rental property investors. Built by depreciation specialists with 25+ years of engineering and tax-code experience.
Services
- All services
- Residential rentals
- Short-term rentals
- Multifamily
- Commercial office
- Retail
- Warehouse
- Hotels
- Medical offices
- Restaurants & bars
Resources
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