Cost Segregation Studies

If you’ve recently constructed, purchased, renovated, or expanded a commercial property, you may be sitting on untapped tax savings. A cost segregation study is a strategic tax planning tool that allows property owners to accelerate depreciation deductions—freeing up cash flow and reducing taxable income in the early years of ownership.

At KatzAbosch, we specialize in delivering IRS-compliant, engineering-based cost segregation studies that help our clients optimize their real estate investments.

Benefits of Conducting a Cost Segregation Study

Traditional depreciation spreads deductions over 27.5 or 39 years. Cost segregation reclassifies qualifying building components—such as lighting, flooring, and parking lots—into shorter-lived asset categories (5, 7, or 15 years), allowing you to:

• Increase after-tax cash flow
• Reduce federal and state income taxes
• Reinvest savings into operations or future acquisitions
• Claim “catch-up” deductions for properties placed in service in prior years

Who Benefits Most

Our cost segregation services are ideal for:

• Commercial property owners (office, retail, medical, industrial, hospitality)
• Residential rental investors (multi-family, vacation rentals, short-term rentals)
• Real estate developers and portfolio managers
• Businesses planning renovations or expansions
• Owners preparing for a 1031 exchange or sale

Properties with a cost basis of $500,000 or more typically see the most significant benefit.

Ready to Discover Your Savings Potential?

Whether you’re acquiring a new property or looking to optimize an existing one, our team is here to help you unlock hidden value. Contact KatzAbosch today to schedule a consultation and learn how a cost segregation study can transform your tax strategy.