How it works

Turn your property into a CPA-ready tax savings strategy

Seneca makes cost segregation straightforward: we estimate your savings upfront, collect the right property details, perform an engineering-based analysis, and deliver an IRS-compliant report your CPA can use.

Get Your Free Savings Proposal No-cost proposal before you spend a dollar.

How cost segregation works

It moves eligible parts of your property into faster depreciation schedules

Without a study, most of a rental or commercial building is depreciated slowly over 27.5 or 39 years. Cost segregation breaks the property into components, identifies assets that qualify for shorter tax lives, and accelerates more depreciation into the early years of ownership.

The result is not a new deduction created out of thin air. It is a timing strategy: more depreciation now, less trapped in later years, and more cash flow available while you own the property.

Start with the depreciable basis

Land is excluded, then the building basis becomes the pool analyzed for shorter-life components.

Separate personal property and land improvements

Items like specialty electrical, flooring, cabinetry, parking areas, landscaping, and site work may qualify.

Accelerate deductions into earlier tax years

Your CPA uses the study to update depreciation and apply bonus depreciation where available.

Depreciation before and after a study Conceptual example

Standard depreciation mostly 27.5 / 39 years

After cost segregation basis reclassified

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Shorter tax lives can pull deductions forward, reducing taxable income and improving near-term cash flow.

How Seneca turns that strategy into a defensible study

The process is built to remove uncertainty early. You see whether the study is likely worth doing before committing, then Seneca handles the engineering, documentation, and CPA-ready reporting.

Free savings estimate

Share the property type, purchase price or depreciable basis, improvement costs, and timeline. Seneca estimates possible first-year deductions and ROI.

Document collection

We gather closing statements, depreciation schedules, construction details, photos, and other records needed to support the study.

Property review

Our team reviews the property virtually or on site, documenting assets that may qualify for 5-, 7-, or 15-year treatment.

CPA-ready report

You receive the final cost segregation report, allocations, and fixed asset schedule so your CPA can apply the deductions correctly.

Cost segregation review and property analysis

Does my property qualify?

Cost segregation is for income-producing real estate, not just big commercial buildings

If you own rental property, commercial real estate, owner-occupied business property, a new build, or major renovations, a study may uncover deductions that standard depreciation leaves trapped for decades.

$300K+ property value A common feasibility threshold for investment property purchases.

$500K+ improvements Renovations and qualified improvements can create strong opportunities.

3+ year hold A longer planned hold can help maximize value and manage recapture risk.

What Seneca delivers

A cost segregation study is only valuable if it is accurate, defensible, and easy for your tax team to implement.

Engineering-based component analysis

Building systems and site improvements are analyzed and classified according to shorter depreciation schedules where appropriate.

Detailed cost allocations

The report separates qualifying assets from the 27.5- or 39-year building basis so deductions can be accelerated.

IRS-compliant documentation

Findings are documented with methodology, asset categories, and support designed to align with the IRS Cost Segregation Audit Technique Guide.

CPA implementation support

Your CPA receives the information needed to update depreciation schedules and, when appropriate, capture missed depreciation with Form 3115.

A timeline built around tax deadlines

Most studies are completed in a few weeks once the right property information is available. Rush options may be available for filing deadlines.

Day 1

Estimate and scope

Seneca confirms the property details, expected savings, fee, and whether the study makes financial sense.

Week 1

Records and tour

Documents are collected and the property review is scheduled. Virtual reviews keep the process efficient for most owners.

Weeks 1-4

Report delivery

The engineering team completes the analysis and delivers the PDF report plus fixed asset schedule to you and your CPA.

The questions investors ask first

Cost segregation is powerful, but it should be approached with a clear view of eligibility, compliance, and next steps.

Is cost segregation legal?

Yes. Cost segregation is an IRS-recognized tax planning strategy when supported by a qualified, well-documented study.

Can I do this for a property I bought in a prior year?

Often, yes. Past depreciation can typically be corrected without amending prior returns by filing Form 3115, but your CPA should confirm the right approach.

Will this trigger an audit?

A properly prepared study should not trigger an audit by itself. The risk comes from weak documentation, poor time participation qualification, unsupported allocations, or poor quality studies like raid / DIY / ez / modeling methodology studies that are not typically recommended by CPAs and do not stand up to IRS review. Seneca only performs the highest-quality methodology study: engineered cost segregation studies.

What property types can benefit?

Single-family rentals, multifamily, apartments, short-term rentals, self-storage, medical facilities, warehouses, retail, offices, restaurants, and many other income-producing properties may qualify.

What does it cost?

Pricing depends on property type, size, complexity, and available records. Seneca provides a free preliminary analysis so you can compare the fee to estimated tax savings before moving forward.

Ready to start?

See what your property could unlock before you commit.

Send the property details and Seneca will estimate the savings opportunity, study fee, and likely ROI. If the numbers do not make sense, you will know before spending money on a study.

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