CSA Partners provides engineering-based cost segregation services for commercial real estate owners, investors, developers, and tax advisors nationwide. Our cost segregation studies identify and reclassify qualifying building components to accelerate depreciation, supported by detailed engineering analysis and property-level documentation built for defensibility.
Cost segregation is a tax strategy that separates qualifying building components into shorter depreciation periods. Instead of depreciating an entire residential rental property over 27.5 years or commercial property over 39 years, eligible assets may be reclassified into 5-, 7-, or 15-year recovery periods — accelerating depreciation deductions and improving near-term cash flow.
Cost segregation can benefit many types of income-producing real estate. Eligibility and potential accelerated depreciation depend on the property's construction, use, depreciable basis, and qualifying components.
Apartments, rental communities and multifamily developments.
Professional offices, corporate buildings and business properties.
Hotels, resorts and other lodging properties.
Shopping centers, retail buildings and storefront properties.
Restaurants, food-service buildings and hospitality concepts.
Warehouses, manufacturing facilities and industrial properties.
Storage facilities and multi-building storage properties.
Medical offices, clinics and specialty healthcare facilities.
Accelerate depreciation without sacrificing defensibility. CSA Partners combines engineering expertise, detailed property analysis, and audit-ready documentation to support property owners and the professionals who advise them.
Give clients an engineering-based cost segregation resource backed by detailed documentation while you maintain the client relationship.
Advisory SupportIdentify qualifying components in new construction, renovations, and acquisitions to accelerate depreciation and improve project economics.
Development StrategyAccelerate eligible depreciation while maintaining the documentation needed to support your property's tax position.
Property StrategyCSA Partners is a nationwide cost segregation company with more than 30,000 completed studies. Our engineering-based approach combines construction expertise, detailed property analysis, and defensible documentation to support accurate asset classification and a well-substantiated tax position.
Our engineers combine property-level analysis with SiteWizeâ„¢ technology to document qualifying assets and support accurate classifications.
Construction knowledge helps our team identify, classify, and value building components with the level of detail required for a thoroughly documented study.
Every study is built around detailed supporting documentation and established cost segregation methodology designed to support your tax position.
We coordinate with your CPA or tax advisor to help integrate study results efficiently into your tax strategy and filing process.
A cost segregation study does more than identify individual assets. CSA Partners reconciles the property's depreciable basis, evaluates direct and indirect costs, engineers individual building components, and assigns supported recovery periods based on each asset's function and use.
See how engineering-based cost segregation accelerated depreciation across actual CSA Partners studies and a range of income-producing properties.
Case studies reflect individual properties and are provided for illustrative purposes. Cost segregation results vary based on property type, use, depreciable basis, construction, available documentation, and individual facts and circumstances.
Get straightforward answers about cost, timing, eligibility, documentation, audits, and how a cost segregation study fits into your broader tax strategy.
A cost segregation study is an engineering-based analysis of a depreciable real estate property that identifies building components that may qualify for shorter tax recovery periods. Instead of depreciating the entire building over 27.5 or 39 years, qualifying components may be classified into 5-, 7-, or 15-year recovery periods. A properly documented study evaluates the property's depreciable basis, direct and indirect costs, individual building components, and the facts and circumstances supporting each classification.
Study fees begin at $3,000 and vary based on the size, complexity, and scope of the property. Before you commit, CSA Partners provides a no-cost Benefit Analysis outlining the estimated depreciation benefit and study cost so you can evaluate whether the opportunity makes financial sense. If the numbers don't support moving forward, we'll tell you.
The best time to perform a cost segregation study is as soon as possible after purchasing, constructing, or renovating a property. However, studies can also be performed later in the property’s ownership. A look-back study may allow you to capture missed depreciation through an accounting method change, generally using IRS Form 3115, without amending prior-year tax returns.
A look-back cost segregation study may allow you to claim eligible depreciation missed in prior years as a catch-up adjustment on your current tax return, generally through IRS Form 3115, without amending prior-year returns. Cost segregation can be performed on properties that have been held for many years, although the potential benefit depends on the property and your individual tax circumstances. Your CPA or tax advisor can help determine how the adjustment applies to your specific situation.
A cost segregation study does not automatically trigger an IRS audit. When performed with engineering-based analysis and thorough supporting documentation, cost segregation is an established tax strategy with guidance addressed in the IRS Cost Segregation Audit Techniques Guide. CSA Partners builds each study with audit readiness in mind and provides 100% no-cost audit support for 36 months following completion of the study.
A cost segregation study typically takes 3–4 weeks from engagement to final report delivery. The process includes document collection, property analysis, an on-site inspection when applicable, engineering analysis, and preparation of the final report. Expedited timelines may be available when timing is critical, such as year-end tax planning or an upcoming transaction.
Basic documentation typically includes the property address and acquisition date, purchase closing statement, current depreciation schedule if available, and building cost information. Construction drawings and detailed cost records are helpful but not always required. If documentation is missing or you’re unsure what you have, CSA Partners will work with you to identify and gather what’s needed to complete the study.
Yes. Cost segregation can still provide meaningful tax benefits on a property you’re planning to sell, but the timing and potential depreciation recapture should be evaluated before moving forward. The benefit depends on factors such as the property’s depreciable basis, holding period, tax situation, and anticipated sale. If a sale is approaching, CSA Partners can also evaluate whether a 1245 Exchange® may help address the tax impact of depreciation recapture.
CSA Partners combines engineering expertise, construction knowledge, property-specific analysis, and on-site verification when appropriate. Our team uses SiteWizeâ„¢ technology to capture property-level details and support asset classifications with thorough documentation. Rather than focusing solely on maximizing reclassification, we build each study around accuracy, documentation, and long-term defensibility. In addition, CSA Partners provides 100% no-cost audit support for 36 months following completion of the study.
Not necessarily. Cost segregation can still be valuable even when a property or business is not currently generating taxable income. Accelerated depreciation may create or increase a tax loss, and the ability to use that loss depends on your individual tax situation, including applicable passive activity, at-risk, and net operating loss rules. Your CPA or tax advisor can determine when and how the deductions may be used.
Properties that generally are not candidates for cost segregation include primary residences and property held primarily for sale as inventory. Certain tax-exempt or otherwise non-depreciable property may also have limited or no benefit. Smaller investment properties may still qualify, but the potential tax benefit should be weighed against the cost of the study. CSA Partners can perform a no-cost Benefit Analysis to determine whether a study makes financial sense before you move forward.
Get a no-cost Benefit Analysis with an estimate of potential accelerated depreciation and study cost—so you can quickly determine whether a cost segregation study makes sense for your property.
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