Can you do cost segregation on commercial property?
Yes, cost segregation applies to virtually all income-producing commercial properties, including industrial facilities, warehouses, office buildings, retail centers, and more. Any commercial building with a depreciable basis above $300,000 is typically a strong candidate. An engineering-based study identifies components eligible for 5, 7, or 15-year depreciation rather than the standard 39-year schedule, generating significant accelerated deductions.
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 is cost segregation for an industrial facility?
Cost segregation for industrial facilities 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 39-year depreciation life to 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.
How long does a cost segregation study take for an industrial property?
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 reduce turnaround to 2–3 weeks by eliminating travel time. Rush service is available for clients with urgent tax deadlines, with delivery possible in as little as one week for an additional premium.
Can I do a lookback cost segregation study 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 happens if the IRS audits my cost segregation study?
Every Seneca cost segregation study includes the AuditDefense guarantee at no additional charge. If the IRS audits your industrial facility's study, our 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.
Do I need to have my CPA involved in the cost segregation process?
Yes, your CPA plays an important role in implementing the study findings into your tax returns. Seneca provides full post-study CPA coordination at no additional charge, including review of the engineering report, integration of depreciation schedules into current returns, and Form 3115 guidance for lookback studies. Each client also receives a dedicated account manager to support both the client and their tax professional throughout the process.
Does Seneca Cost Segregation serve industrial facility owners nationwide?
Yes, Seneca's engineering team is deployed across all 50 states and can perform both virtual and on-site inspections for industrial facilities anywhere in the country. Virtual tours are particularly efficient for large industrial properties, taking just 30–45 minutes and delivering results in 2–3 weeks. There is no geographic limitation—over 10,200 studies have been completed from coast to coast.