Cost Segregation

Cost Segregation for Accelerated Depreciation

Cost Segregation for Tax Savings

Bigger Deductions, Sooner

Cost segregation is a powerful tax strategy that allows property owners to accelerate depreciation and reduce taxable income, putting more money back in your pocket sooner.

If you own a residential or commercial rental property, a cost segregation study can help identify and reclassify building components (like flooring, cabinetry, electrical systems, and exterior improvements) into shorter-lived asset categories (5, 7, or 15 years instead of 27.5 or 39 years). This allows you to claim significantly more depreciation in the early years of ownership.

Benefits:

  • Increase cash flow by lowering taxable income
  • Reduce current-year tax liability
  • Capture missed depreciation for prior years via IRS Form 3115
  • Pair with bonus depreciation for even greater benefit—especially for assets placed in service in 2025 or earlier


Who Should Consider It?

  • Real estate investors and landlords
  • Property owners who recently purchased, renovated, or constructed a building
  • Anyone with a rental property valued at $300,000 or more

How It Works:

  1. A licensed structural engineer (Pacific Skyline, Inc.) analyzes your property’s components
  2. Solvent LLC, as your tax advisor, calculates your eligible depreciation and files any necessary IRS forms
  3. You get a full tax benefit breakdown and updated depreciation schedule

Ready for a Free Quote? We partner with Pacific Skyline, Inc. to provide engineering-backed cost segregation studies. If you'd like a personalized estimate for your property, fill out the form at the link below:

Request a Quote at PacificSkyline.us