Cost Segregation
Cost Segregation Services for U.S. Real Estate Investors
Cost segregation is a strategic tax planning tool that allows real estate owners to accelerate depreciation deductions by reclassifying components of their property from a standard 27.5- or 39-year depreciation schedule to 5-, 7-, or 15-year categories under the Modified Accelerated Cost Recovery System (MACRS). This significantly reduces current taxable income and improves cash flow.
Whether you’ve recently purchased, constructed, renovated, or expanded a property, a cost segregation study can generate substantial tax savings and early ROI.
Why Choose Cost Segregation?
Effective Property Management Accounting involves precise processes to keep financial records up to date. Some of the key bookkeeping tasks include:
Accelerated Depreciation
Reclassify 20–40% of your building’s cost into shorter-lived assets and depreciate them faster.
Bonus Depreciation Advantage
Take advantage of 100% bonus depreciation (per the Tax Cuts and Jobs Act – phased down in coming years) to write off qualifying property in the first year.
Improved ROI for Real Estate Holdings
Cost segregation is a must for maximizing after-tax returns in real estate investments.
Compliance with U.S. Tax Code
Our reports adhere to IRS guidelines and can withstand scrutiny in the event of an audit.
Increased Cash Flow
Reduce tax liability in early years, freeing up cash for reinvestment, capital improvements, or debt servicing.
Who Qualifies for Cost Segregation?
Cost segregation is ideal for:
Owners of commercial or residential rental properties valued at $500,000 or more
Properties acquired, built, or renovated after 1987
Investors, developers, REITs, or operators of:
Apartment buildings
Office complexes
Retail centers
Hotels and resorts
Warehouses and industrial facilities
Medical and assisted living facilities
Even properties acquired in prior years can be eligible through catch-up depreciation (IRC §481(a) adjustment), without needing to amend prior returns.
Our Cost Segregation Process
We at MaRSFi leverage advanced property management accounting tools and our deep expertise to tackle the industry’s most pressing challenges:
Initial Feasibility Review – We provide a complimentary benefit estimate to determine potential tax savings.
Site Visit & Engineering-Based Study – Our team of CPAs and construction engineers evaluate blueprints, cost data, and perform an on-site analysis.
Asset Reclassification – We segregate building components into IRS-defined categories (personal property, land improvements, etc.).
Comprehensive Report Delivery – A detailed, audit-ready report with full documentation and depreciation schedules.
Tax Filing Support – We coordinate with your CPA or tax advisor to implement the findings in your current tax filings (Form 3115, depreciation schedules, etc.).
Why Partner With Us?
Maximize Your Tax Savings. Accelerate Depreciation. Unlock Cash Flow.
U.S. CPA-Aligned Reports – Fully compliant with IRS standards and built to stand up to audit scrutiny.
Outsourced Expertise, In-House Results – As a trusted partner for CPA firms and real estate investors, we deliver U.S.-grade quality with global efficiency.
Fixed-Fee, High ROI Engagement – Transparent pricing and measurable tax impact.
Ready to Save $100,000+ in Taxes?
Let’s run a free preliminary analysis.
Contact us today to see how much cash flow you can unlock from your real estate investments.