Don’t wait 39 years to write off your real estate investment. A Cost Segregation Study reclassifies building components (specialized electrical, flooring, lighting, and paving) into 5-, 7-, and 15-year depreciation schedules, or immediate bonus depreciation. That means a dramatically lower tax bill this year. Cash goes back into your business where it belongs.
Cultivate helps property owners in Maine, New Hampshire, New York, and nationwide find thousands in tax savings.
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When you buy or build commercial real estate, the IRS defaults to a 27.5- or 39-year depreciation schedule. That’s a long wait for a deduction you’ve already earned. Cost segregation changes the math, and the results are significant for most property owners.
Cost segregation reclassifies 20-40% of total cost into 5-, 7-, or 15-year property (or immediate bonus depreciation). Year-one deductions can be 5 to 10 times higher than the standard approach.
Year-one deductions multiply by 5-10x
Standard IRS rules depreciate your entire building over 27.5 or 39 years. On a $2M commercial property, that’s roughly $51,000 in annual deductions spread thin across four decades.
$2M property = $51K/yr for 39 years
A cost segregation study creates a large, non-cash deduction that slashes your tax liability for the year. It gives you cash to reinvest or pay down debt, without selling a single asset or changing how your business operates.
Already own the property? A look-back study lets you claim all the depreciation you’ve missed (on this year’s return) using Form 3115. It’s one of the most overlooked cash injections available to property owners, and we do this regularly for clients who didn’t know it was an option.
“Cultivate found tax savings we didn't know existed. Between the cost segregation study on our Portland properties and restructuring how we pay state taxes through the business instead of out of our own pockets, we kept a six-figure difference in the business instead of writing it to the state.”
Whether you own your operating facility or hold a multi-entity real estate portfolio, cost segregation opportunities exist across all four of our industry specialties. Find yours below to see where the biggest deductions tend to hide.
Cost segregation is an engineering-based analysis that needs to hold up if the IRS ever asks questions. We handle every step of the process, building the documentation to back it up from day one.
We start by reviewing your property purchase price, construction costs, or renovation scope to confirm the study will deliver a return. Properties with a cost basis above $500,000 typically generate the strongest results. We’ll give you a realistic estimate of your potential savings before we go any further.
We analyze your architectural plans, contractor pay applications, and cost records to properly categorize every fixture and finish. Every component gets assigned the shortest allowable depreciation life the IRS permits, documented precisely in an audit. This is the part of the process that determines the size of your deduction.
We deliver a comprehensive, audit-ready engineering report. We also handle all the necessary IRS filings, including Form 3115 for look-back studies. Your savings are applied without any disruption to your regular workflow. You get the deduction, we handle the paperwork.
Accelerating depreciation is one of the most powerful tax moves available to property owners. But it works best when it’s part of a broader strategy. Here’s how three of our services connect to your cost seg study.
A major depreciation deduction only works if it lands in the right place.
Our tax planning team incorporates your cost seg results into your full multi-entity structure. Your accelerated deductions offset the right income across every entity you own.
Explore tax planning & strategyUnlocking tens or hundreds of thousands in tax savings creates a strategic opportunity, but only if you have a plan for the cash.
Our CFO team helps you put that freed-up capital to work. You can reinvest in equipment, fund your next acquisition, forecast future tax years, or accelerate your retirement savings.
Explore CFO services & coachingAccurate cost segregation starts with accurate books.
Our accounting team cleans up disorganized CapEx records and leasehold improvement accounts. Every building asset is correctly reflected on your balance sheet. Messy books mean missed deductions, so we fix that first.
Explore concierge accountingHave you purchased or constructed a commercial property this year? Let’s run a quick feasibility analysis to estimate your potential cash savings. Most clients are surprised by how much they’ve left on the table.
Disclaimer: This is not tax advice. Businesses should consult with their tax advisor to determine eligibility and applicable regulations.
