What is cost segregation on commercial buildings?
Cost segregation on commercial buildings is an engineering-based tax strategy that identifies and reclassifies building components such as specialized electrical systems, loading dock equipment, process piping, and land improvements from a standard 39-year depreciation life to accelerated schedules of 5, 7, or 15 years. This front-loads your depreciation deductions, significantly reducing taxable income and increasing cash flow in the early years of property ownership. It applies to virtually all income-producing commercial properties, including industrial facilities, warehouses, office buildings, and retail centers.
How much does it cost to do a cost segregation?
Study fees for industrial facilities vary based on property size and complexity. For properties valued $300K–$1M, studies typically cost $3,000–$12,000; for $1M–$3M properties, $10,000–$20,000; and for $3M–$10M properties, $15,000–$30,000. The return on investment commonly ranges from 10:1 to 25:1, meaning for every dollar spent, you recover $10 to $25 in tax savings. A free preliminary estimate is available before any commitment.
What types of industrial facility components are reclassified in a cost segregation study?
During a cost segregation study for an industrial facility, an engineering team identifies and reclassifies components such as specialized electrical systems, loading dock equipment, process piping, and land improvements. These assets are moved from the standard 39-year depreciation schedule to accelerated 5, 7, or 15-year categories, generating substantial front-loaded tax deductions.
How long does a cost segregation study take for an industrial facility?
Seneca completes most industrial facility cost segregation studies within 2–4 weeks, significantly faster than the industry standard of 4–8 weeks. Virtual property tours can reduce turnaround to 2–3 weeks by eliminating travel time. Rush service is also available for clients with urgent tax deadlines, with delivery possible in as little as one week for an additional premium.
Can I claim missed depreciation on an industrial facility I purchased years ago?
Yes. If you purchased, constructed, or renovated your industrial facility within the last 15 years and haven't performed a cost segregation study, a lookback study lets you claim all missed depreciation deductions in a single tax year using IRS Form 3115 without amending prior returns. The process and deliverables are identical to a current-year study, including full audit defense.
What is included in Seneca's IRS Audit Defense guarantee?
Every Seneca cost segregation study includes the AuditDefense guarantee at no additional charge. If the IRS audits your industrial facility's study, Seneca's specialists handle all field inquiries, provide supporting documentation, and communicate directly with the IRS on your behalf for as long as you own the property. If a material issue is found with the study, Seneca can even refund the study cost.
Does Seneca offer virtual property inspections for industrial facilities?
Yes. Seneca offers virtual property tours as a convenient alternative to on-site inspections. The video-based inspection takes just 30–45 minutes, eliminates costly travel, reduces study fees, and delivers completed studies in 2–3 weeks without disrupting your facility's operations. On-site inspections are also available for industrial facilities across all 50 states.
What credentials and certifications does Seneca Cost Segregation hold?
Seneca Cost Segregation holds membership in the American Society of Cost Segregation Professionals (ASCSP) and carries the Certified Cost Segregation Professional (CCSP) designation issued by the ASCSP. The company has completed over 10,200 studies across all 50 states, maintains a 5.0-star client rating, and has earned a 95% client referral rate, reflecting its commitment to engineering rigor and IRS-defensible results.