Engineering-based cost segregation studies can dramatically accelerate depreciation on investment properties — creating meaningful tax deferral in the first years of ownership.
What is cost segregation? Cost segregation is an IRS-approved tax strategy that identifies and reclassifies personal property assets and land improvements — separating them from the building structure to accelerate depreciation from 39 years down to 5, 7, or 15 years.
Who benefits most? Investors who acquired properties in the last 3-5 years (lookback studies are available), those with properties valued above $500K, and investors expecting high ordinary income in the near term.
The Veridian approach. Our engineering-based studies go beyond software-generated estimates. We send qualified engineers to physically inspect and document the property — ensuring maximum supportable reclassification and audit protection.
Combine with bonus depreciation. Under current law, qualifying personal property reclassified through cost segregation may be eligible for 60% bonus depreciation (2024 rate) — creating first-year deductions that can significantly offset other income.
Contact our team to discuss whether a cost segregation study makes sense for your portfolio.