Property Depreciation and Cost Segregation Services

Cost segregation study pricing varies based on property size, complexity, and type. Entry properties ($300K-$1M basis) typically cost $3,000-$12,000 and generate $30,000-$75,000 in first-year savings. Medium properties ($1M-$3M) cost $10,000-$20,000 with $75,000-$200,000 in savings. Large properties ($3M-$10M) cost $15,000-$30,000 with $200,000-$400,000 in savings. Very large properties ($10M+) cost $30,000-$60,000+ with savings reaching several million dollars. The typical ROI ratio is 10-25:1, meaning for every dollar invested in the study, you receive $10-$25 in tax savings. We provide free preliminary analyses to confirm the study makes financial sense for your specific property.

Any income-producing property with a depreciable basis of $300,000 or more qualifies for cost segregation. Eligible property types include residential rentals (single-family homes, condos, multifamily buildings, apartment complexes), commercial properties (office buildings, retail centers, shopping malls, industrial facilities), hospitality assets (hotels, motels, resorts), specialized facilities (self-storage, medical offices, assisted living, daycare centers), and mixed-use developments. Both purchased and newly constructed properties qualify, as do properties with recent renovations or improvements. Properties must be used for business or income generation—personal residences do not qualify. Properties purchased up to 15 years ago are eligible for lookback studies using IRS Form 3115.

Most cost segregation studies are completed within 2-4 weeks from the initial property inspection, which is significantly faster than the industry standard of 4-8 weeks. Virtual property tours can be scheduled at your convenience and typically take 30-45 minutes, leading to faster turnaround times of 2-3 weeks. For clients with urgent tax deadlines, we offer rush service that can deliver complete engineered studies in as little as one week. The timeline includes property documentation collection, virtual or on-site inspection, engineering analysis, report generation, and final review. Our proprietary technology and streamlined processes enable these faster completion times without sacrificing accuracy or IRS compliance.

Yes, through a lookback cost segregation study, you can claim missed depreciation deductions on properties purchased up to 15 years ago. Using IRS Form 3115, you can capture all unclaimed accelerated depreciation in a single year without amending prior tax returns. The lookback study process is identical to current-year studies, including comprehensive engineering analysis, detailed reporting, and audit defense coverage. Lookback studies cost approximately the same as current-year studies, with some firms charging slightly more for historical analysis. We can reconstruct property information using industry databases and historical cost data if original purchase records are unavailable, ensuring you don't miss out on substantial tax benefits simply because time has passed.

Every Seneca cost segregation study includes lifetime IRS Audit Defense (AuditDefense) at no additional charge. If the IRS audits your study, we defend the report, answer all field inquiries, provide supporting documentation, and handle all audit-related communications for as long as you own the property. Our engineering-based methodology and strict adherence to IRS guidelines result in a low-risk audit profile. The AuditDefense guarantee is backed by our commitment to quality—if an audit reveals a material issue with the study, we can even refund your study cost. You're protected from the first day you receive the report through the entire duration of your property ownership, providing complete peace of mind.

The average Seneca client achieves first-year tax savings of $171,243, though actual savings vary based on property value, type, and individual tax situation. Cost segregation typically converts 20-40% or more of your property's depreciable basis into immediate tax deductions. For example, a $2 million property might generate $400,000-$800,000 in accelerated deductions over the first few years, translating to $80,000-$240,000 in federal tax savings at typical rates. The ROI typically ranges from 10:1 to 25:1, meaning every dollar spent on the study returns $10-$25 in tax benefits. We provide a free preliminary savings estimate that analyzes your specific property to project realistic tax savings before you commit to a study.

Yes, CPA coordination and implementation support is included with every cost segregation study at no additional charge. After completing your study, we coordinate directly with your accountant to review the report and prepare for implementation in your tax returns. We provide organized depreciation schedules formatted for CPA use, supporting documentation, and setup guidance. Whether you're filing current-year returns or using Form 3115 for a lookback study, our team remains available post-study to answer questions and provide necessary support. This ensures seamless integration of cost segregation benefits into your overall tax strategy and helps your CPA implement the findings effectively and confidently.

Cost segregation is completely legal and explicitly sanctioned by the IRS through established tax codes and procedures. The strategy has been validated through numerous court cases and IRS rulings over decades. When performed by qualified professionals using engineering-based methodology—as all Seneca studies are—cost segregation carries minimal risk. Our studies strictly adhere to IRS guidelines, use industry best practices for asset classification, and include comprehensive documentation with detailed findings, diagrams, photos, and supporting materials. We employ licensed professional engineers and certified cost segregation professionals (CCSP) who follow standards set by the American Society of Cost Segregation Professionals (ASCSP). The engineering rigor and documentation quality of our studies provide strong defensibility in the unlikely event of an audit.