Cost Segregation Studies.
ABOUT
Summarizing Cost Segregation.
Cost Segregation is a proven tax strategy that allows real estate owners and businesses to accelerate depreciation deductions by identifying and reclassifying specific components of a property into shorter asset lives typically 5, 7, or 15 years rather than the standard 27.5 or 39 years. This approach can dramatically reduce taxable income and increase cash flow in the early years of ownership.
Formally recognized by the IRS following the landmark Hospital Corporation of America (HCA) case in 1997, Cost Segregation has since become a widely accepted and IRS-sanctioned planning tool. Today, it remains one of the most effective methods for unlocking tax savings tied to commercial properties whether newly constructed, recently acquired, or renovated.
By front-loading depreciation, property owners are able to frontload deductions that would otherwise be spread across decades delivering timely financial benefits.
ABOUT
Summarizing Cost Segregation.
Cost Segregation is a proven tax strategy that allows real estate owners and businesses to accelerate depreciation deductions by identifying and reclassifying specific components of a property into shorter asset lives typically 5, 7, or 15 years rather than the standard 27.5 or 39 years. This approach can dramatically reduce taxable income and increase cash flow in the early years of ownership.
Formally recognized by the IRS following the landmark Hospital Corporation of America (HCA) case in 1997, Cost Segregation has since become a widely accepted and IRS-sanctioned planning tool. Today, it remains one of the most effective methods for unlocking tax savings tied to commercial properties whether newly constructed, recently acquired, or renovated.
By front-loading depreciation, property owners are able to frontload deductions that would otherwise be spread across decades delivering timely financial benefits.
CONSIDERATIONS
Why It Matters.
Cost Segregation matters because timing is everything in tax strategy. Instead of spreading depreciation over 27.5 or 39 years, this approach allows qualifying property components to be depreciated over just 5, 7, or 15 years dramatically accelerating deductions. The result? Businesses often realize tens or even hundreds of thousands of dollars in tax savings within the first few years of ownership, compared to waiting decades under traditional methods.
For real estate owners, investors, and business operators, this means more available cash right when it’s needed most. That liquidity can be reinvested into growth, used to pay down debt, or improve overall financial flexibility. Cost Segregation is especially valuable during the early years of an investment, when capital demands tend to be highest.
CONSIDERATIONS
Why It Matters.
Cost Segregation matters because timing is everything in tax strategy. Instead of spreading depreciation over 27.5 or 39 years, this approach allows qualifying property components to be depreciated over just 5, 7, or 15 years dramatically accelerating deductions. The result? Businesses often realize tens or even hundreds of thousands of dollars in tax savings within the first few years of ownership, compared to waiting decades under traditional methods.
For real estate owners, investors, and business operators, this means more available cash right when it’s needed most. That liquidity can be reinvested into growth, used to pay down debt, or improve overall financial flexibility. Cost Segregation is especially valuable during the early years of an investment, when capital demands tend to be highest.
THE PROCESS
From Property to Payout.
The process begins with a preliminary review of the subject property to determine if a study is appropriate based on property type, cost basis, and ownership structure. Once the opportunity is validated, the next step is to identify and isolate qualifying assets—such as electrical systems, plumbing, flooring, HVAC, exterior improvements, and specialty finishes—that may be eligible for shorter depreciation schedules.
An on-site visit is then conducted by a cost segregation professional, often with a background in engineering, construction, or architecture. This site inspection is essential for accurately documenting the physical attributes and conditions of the property, ensuring compliance with IRS methodologies. Using data gathered during the site visit, the Cost Seg team proceeds to reclassify assets into 5, 7, or 15-year categories based on IRS guidelines, rather than the traditional 27.5 or 39-year schedules.
The findings are compiled into a comprehensive Cost Segregation report, which includes detailed asset listings, depreciation schedules, engineering analysis, and full documentation to support the reclassifications. This final report is then shared with your accountant or tax advisor, allowing them to incorporate the accelerated depreciation into your current or amended tax returns. The result is a powerful combination of reduced taxable income, immediate cash flow improvement, and enhanced financial reporting all delivered in a format designed to withstand IRS scrutiny.
Time is Money! Why wait 39 years? Cost Segregation front-loads your savings when your business needs it most.
WHAT QUALIFIES?
If It Stands, It Saves.
Most income-producing properties can benefit from a Cost Segregation study whether newly constructed, recently acquired, or improved through renovations. From office buildings and retail centers to manufacturing facilities and multifamily developments, nearly any commercial property structure is eligible for significant tax savings through accelerated depreciation.
Commercial Office Buildings & Warehouses
New Construction Projects
(Commercial or Residential Income-Use)
Manufacturing Plants & Industrial Facilities
Hotels, Resorts & Hospitality Venues
Auto Dealerships, Service Centers & Repair Shops
Retail Stores, Shopping Centers
& Restaurants
Multifamily Properties & Apartment Complexes
Renovated or Expanded Existing Structures
REPUTABLE EXPERTS
Prosper With Professionals.
When it comes to Cost Segregation, accuracy, defensibility, and experience aren’t optional, they’re essential. Finding the right provider can be challenging, as few specialists possess the technical expertise and integrity required to meet BDC’s standards. That’s why BDC has partnered with a leading, nationally recognized Cost Segregation provider known for its precision, credibility, and proven results.
Only the best are entrusted to serve BDC clients. In keeping with our standards of excellence, every Cost Segregation study is customized, not cookie-cutter or offshored and undergoes a rigorous review by expert tax specialists and attorneys to ensure full compliance and audit readiness. From discovery to delivery, this partnership is built on transparency, precision, and a commitment to maximizing your benefit while minimizing risk.
Pre-Qualification Review at No Cost
Full Audit Representation Included
No Upfront Fees. Pay Upon Report Delivery
Tax Attorney
Led
Review
Cost
Segregation
Consulting
Better
Be
BDC.
BDC is proud to include Cost Segregation Services among our core service offerings. This IRS-recognized strategy remains one of the most effective ways for property owners and investors to accelerate depreciation, reduce tax liability, and increase near-term cash flow.
Through our collaborative network, we’ve engaged an industry leading Cost Segregation provider with a proven track record of success. BDC works with you to assess property eligibility for studies and your overall financial objectives, then coordinates with our trusted provider to move directly into execution.