SERVICES

Cost Segregation

Cost Segregation

Cost Segregation

Cost segregation is a way to reclassify parts of a property so you can depreciate them faster and free up cash today instead of over decades.

CalCPAGroup provides engineering‑driven cost segregation studies and tax implementation for real estate investors, landlords, and funds across the United States.

Start Intake

Start Intake

Who is cost segregation for?

Cost segregation is typically most helpful for real estate investors and owners with larger properties or portfolios—multifamily and commercial buildings, short‑term rentals or mixed‑use assets, and properties held inside funds or syndications. If you expect to hold the property for several years and have taxable income to offset, you’re likely in the right zone.

When does it make sense?

A study is worth exploring if you:

Own multifamily or commercial property (or a portfolio of properties)

Have made significant renovations or improvements in recent years

Operate short‑term rentals or mixed‑use properties

Run or participate in a real estate fund or syndication

Expect to hold the property for several years and want to pull forward deductions

During Intake, we’ll review your situation and let you know whether a study is likely to be worthwhile.

Estimate your savings

Use the calculator below to estimate your potential cost segregation tax savings

Get a rough idea of potential Cost Seg tax savings in under 30 seconds.

$1,000,000
$100K$50M
25%
%
Combined effective federal + state rate
%
Used only for effective yield calculation
First-year bonus % depends on this year. 2022 or earlier = 100%. Bonus % per TCJA phase-down (as of 2026).

What impact a study can have

Scenario 1

New multifamily purchase

A Los Angeles investor acquires a mid‑size multifamily building. A cost segregation study moves a significant portion of the cost into 5‑, 7‑, and 15‑year property, creating a large additional first‑year depreciation deduction and freeing up cash for renovations.

Scenario 2

Major property renevation

An owner completes a substantial rehab on a mixed‑use building. By identifying eligible improvements through a study, they accelerate deductions on a significant portion of the renovation spend, improving near-term cash flow while planning for a future sale or a 1031 exchange.

Our Process

CalCPAGroup delivers engineering-backed cost segregation studies tailored to Los Angeles real estate investors and property owners.

  1. Intake

Share basic details about your property or portfolio so we can assess fit.

  1. Property review and scoping

We review your information, ask follow‑up questions, and confirm whether a study makes sense and at what level.

  1. Data and document collection

You provide closing statements, depreciation schedules, construction or renovation costs, and any available plans or drawings.

  1. Engineering‑based analysis

Comprehensive tax We work with engineering‑driven methodologies to identify and reclassify components into shorter‑life asset categories. to help you maximize savings and remain compliant year-round.

  1. Reporting and coordination

You receive a detailed report and supporting schedules. Where a change in accounting method is required, we prepare and file Form 3115 and coordinate with your tax returns so the study is implemented correctly and fully supported.

  1. Ongoing support

If questions come up in future years—or when you buy, sell, or exchange properties—we can help you understand how the study affects those decisions.

Start Intake

Start Intake

Start Intake

Frequently Asked Questions

Frequently Asked Questions

Is cost segregation worth it for my rental property?

It depends on property size, your tax situation, and how long you plan to hold it. Intake gives us enough information to estimate whether a study is likely to provide meaningful benefit.

Is cost segregation worth it for my rental property?

It depends on property size, your tax situation, and how long you plan to hold it. Intake gives us enough information to estimate whether a study is likely to provide meaningful benefit.

Is cost segregation worth it for my rental property?

It depends on property size, your tax situation, and how long you plan to hold it. Intake gives us enough information to estimate whether a study is likely to provide meaningful benefit.

Can I do cost segregation on properties I’ve owned for years?

Often, yes. In some cases you can “catch up” missed depreciation without amending prior returns. We’ll review your situation and explain what’s possible.

Can I do cost segregation on properties I’ve owned for years?

Often, yes. In some cases you can “catch up” missed depreciation without amending prior returns. We’ll review your situation and explain what’s possible.

Can I do cost segregation on properties I’ve owned for years?

Often, yes. In some cases you can “catch up” missed depreciation without amending prior returns. We’ll review your situation and explain what’s possible.

How long does a study take?

Timelines vary based on property complexity and document availability, but most studies are completed within 2-3 weeks after the site visit.

How long does a study take?

Timelines vary based on property complexity and document availability, but most studies are completed within 2-3 weeks after the site visit.

How long does a study take?

Timelines vary based on property complexity and document availability, but most studies are completed within 2-3 weeks after the site visit.

Will this cause problems with the IRS?

When done properly, cost segregation is an accepted approach under existing rules. We focus on thorough documentation and defensible assumptions to reduce risk.

Will this cause problems with the IRS?

When done properly, cost segregation is an accepted approach under existing rules. We focus on thorough documentation and defensible assumptions to reduce risk.

Will this cause problems with the IRS?

When done properly, cost segregation is an accepted approach under existing rules. We focus on thorough documentation and defensible assumptions to reduce risk.

Do you coordinate with my existing CPA or tax team?

Yes. If you already have a preparer, we can coordinate directly with them so the study is implemented correctly on your returns.

Do you coordinate with my existing CPA or tax team?

Yes. If you already have a preparer, we can coordinate directly with them so the study is implemented correctly on your returns.

Do you coordinate with my existing CPA or tax team?

Yes. If you already have a preparer, we can coordinate directly with them so the study is implemented correctly on your returns.

Call 844-4-CALCPA

© 2026 California CPA Group | All Rights Reserved

Call 844-4-CALCPA

© 2026 California CPA Group | All Rights Reserved

Call 844-4-CALCPA

© 2026 California CPA Group | All Rights Reserved