Stop depreciating your property over 39 years. Unlock massive first-year deductions — legally, IRS-compliant, and often worth hundreds of thousands.
Cost segregation is a tax strategy that allows real estate owners to accelerate depreciation deductions on their properties. Instead of depreciating a building over the standard 27.5 or 39 years, a cost segregation study identifies and reclassifies building components — land improvements, personal property, and specialty items — into shorter depreciation lives of 5, 7, or 15 years. This front-loads your deductions, generating substantial tax savings in the early years of ownership.
Our process is thorough, IRS-compliant, and built around your schedule.
Our engineers examine your property's blueprints, invoices, and specifications to identify all depreciable components.
Each element is assigned the correct tax life: 5-year, 7-year, 15-year, or 39-year property under IRS guidelines.
A detailed engineering-based report is prepared meeting all IRS requirements for audit defense.
We work directly with your CPA to file the study correctly and capture a catch-up deduction if applicable — no amended returns needed.
What you gain by working with Innovate Real Estate on cost segregation.
Capture 30–50% of a building's cost in accelerated deductions in year one.
More deductions now means more cash to reinvest in your portfolio.
Own property for years already? We can apply cost segregation retroactively.
Pair with 60% bonus depreciation (2024) to amplify first-year deductions even further.
Every study is fully defensible under audit — prepared by qualified engineers, not accountants alone.
Commercial, residential rental, industrial, medical, retail — virtually any depreciable real estate qualifies.
Submit your property details and we'll prepare a free estimate of your potential tax savings — no obligation.
Request Free ProposalMost clients see significant savings on properties valued at $500,000 or more. Below that, the study cost may outweigh the benefit — we'll tell you upfront.
Yes. A look-back study (also called a 481(a) catch-up) lets you claim all missed deductions in the current year without amending prior returns.
Cost segregation studies prepared by engineers — not just accountants — are IRS-recognized and fully defensible. Our studies have never lost an audit.
Most studies are complete in 3–4 weeks after we receive property documents.
Let our team analyze your property and show you exactly how much you could be saving.