What is a cost segregation study and how does it work?
A cost segregation study is an engineering-based tax analysis that reclassifies components of your real estate from 27.5- or 39-year depreciation schedules into shorter 5-, 7-, or 15-year categories. This accelerates your depreciation deductions, reducing taxable income significantly in the early years of ownership. The study involves a property inspection, engineering analysis, and delivery of IRS-compliant schedules your CPA uses directly in your tax return.
Which South Carolina property types qualify for a cost segregation study?
Most income-producing real estate in South Carolina qualifies, including single-family rentals, multifamily apartments, short-term vacation rentals along the coast, commercial office buildings, retail centers, hotels, self-storage facilities, restaurants, medical offices, and industrial properties. The key requirement is that the property must be income-producing with a depreciable building basis of at least $300,000 (excluding land value).
How much can I save on taxes with a cost segregation study in South Carolina?
Savings vary by property size and type, but Seneca clients achieve an average first-year deduction of $171,243. For example, a $1M–$3M property typically yields $75,000–$200,000 in first-year savings, while a $3M–$10M property can produce $200,000–$400,000. ROI ratios consistently exceed 10:1, meaning for every dollar spent on the study, investors typically recover $10–$25 in tax benefits.
How long does a cost segregation study take to complete?
Seneca completes most studies within 2–4 weeks, which is significantly faster than the industry standard of 4–8 weeks. Virtual property tours, conducted via a 30–45 minute video call, reduce turnaround to 2–3 weeks. If you have an urgent tax deadline, our rush service can deliver your completed study in as little as one week.
Can I do a cost segregation study on a property I bought years ago?
Yes. Seneca's Lookback Cost Segregation Study allows you to claim missed depreciation on properties purchased, constructed, or renovated up to 15 years ago. Using IRS Form 3115, all unclaimed deductions are captured in a single tax year—without filing amended returns. This service costs approximately the same as a current-year study and includes the same comprehensive engineering report and audit defense.
What is included in the Seneca AuditDefense guarantee?
Every Seneca cost segregation study includes lifetime IRS audit defense at no additional charge. If the IRS audits your cost segregation study, Seneca's specialists will provide all supporting documentation, respond to IRS field inquiries, and handle all related communications—for as long as you own the property. If an audit reveals a material issue with the study, Seneca may refund the cost of the study entirely.
How much does a cost segregation study cost in South Carolina?
Study fees are based on property size and complexity. Entry-level properties ($300K–$1M) typically cost $3,000–$12,000 for the study. Medium properties ($1M–$3M) range from $10,000–$20,000, and larger properties ($3M–$10M) range from $15,000–$30,000. Seneca offers a free preliminary analysis, multiple-property discounts, and a free initial consultation before any commitment is made.
Do I need to disrupt my tenants or be present for the property inspection?
Not necessarily. Seneca's virtual property tour option allows you to conduct a full inspection via a 30–45 minute video call at a time that's convenient for you—eliminating travel costs and tenant disruptions. Virtual inspections result in lower overall study fees and faster turnaround times of 2–3 weeks compared to 4–6 weeks for traditional on-site visits. On-site inspections are also available if preferred.