Cost Segregation
Bring real estate depreciation into your broader tax plan.
If your business owns its building or you hold investment real estate, a cost segregation study may let you deduct a meaningful share of that investment years sooner. We deliver studies through Orion Cost Segregation, our cost segregation platform, and fold the results into your overall plan.
How it works
A building is normally depreciated over 27.5 or 39 years. A cost segregation study identifies components, such as certain fixtures, finishes, equipment, and site improvements, that may qualify for much shorter recovery periods. Those faster deductions, including bonus depreciation where it applies, can lower taxes in the near term and improve cash flow.
Who may benefit
- Owners of business or investment real estate
- Properties recently purchased, built, or renovated
- Properties placed in service in prior years, which may still qualify through a look-back study
- Owners who want to align depreciation with a future sale or exit
Our process
- 1
Preliminary estimate
We review the property and give you an initial estimate of the potential benefit.
- 2
Detailed study
Orion Cost Segregation completes the study and documentation.
- 3
Report to your CPA
Your CPA receives what they need to apply the results to your return.
- 4
Plan integration
We factor the results into your broader tax and exit planning.
Planning note
Faster depreciation now can affect taxes when a property is later sold. Eligibility and benefits depend on the property, when it was placed in service, your tax situation, and current law. We look at both sides before you decide.