What Is Cost Segregation?

Cost Segregation Is A Process That Allows You To Unlock Massive Tax Savings: Discover the Secret to Keeping More of Your Hard-Earned Money!

Unlocking Thousands in Missed Property
Tax Savings

Do you feel you’re paying too many taxes for your investment property, or you own a business with real estate as part of it? 

If you have purchased property worth at least $450,000 or have had $500,000 in improvements and plan to hold on to the property for 3+ years, you can capture thousands in tax benefits.

Surprised?

What Cost Segregation Reveals About Your Hidden Tax Savings

Paying a lot in taxes means you make good money, but you need to pay a lot to the IRS as well.

The piece of the puzzle you’ve been missing is using depreciation. Put simply, depreciation reduces your taxable income.

Traditional depreciation methods spread out deductions over long periods, leaving you paying more upfront than necessary.

This outdated approach means you’re essentially giving the IRS an interest-free loan.

Cost segregation helps you find things on your property that reduce your taxable income. And when your taxable income goes down, you pay less in taxes.

Click the button below to schedule your free consultation today.

Discover how much you could save with a professional cost segregation study from Seneca Cost Segregation.

How a Cost Segregation Study Works

Depreciation is a yearly tax deduction that lets you spread out the cost of certain property over the time you use it.

It’s like how a car loses value as it gets older.

Let’s say you purchase a fancy car worth a lot, but each year, it becomes a little less valuable because it gets worn out, has more miles on it, or newer models come out.

What’s the car? 

It’s seats, an engine, brakes, tires, a frame, etc. These parts of the car have certain useful lives before they are expected to be worth $0. When all the parts are worth $0, the car is worth $0.

The same happens with residential and commercial investment property. 

Everything in and on the property has an assigned useful life.

As the property is used, you’ll need to replace the roof, re-paint it, replace gutters, windows, doors, flooring…

Depreciation helps you account for this loss in value over time and cost segregation finds the useful life amounts of everything that makes up your property.

With this knowledge, a cost segregation study uncovers hidden savings and significantly reduces your tax liability. These savings are hidden in plain sight for you to take advantage of.

Here’s where cost segregation comes into play. Think of it as an X-ray for your property. 

The study takes an accounting of every item on your property (doors, windows, fencing, roof, etc.) and breaks down the “useful life” of each item. 

Another word for “useful life” is depreciation.

Using the cost segregation study to identify what items have shorter useful lives, real estate investors can pull forward depreciation that would otherwise take decades to claim.

And because depreciation reduces taxable income, the investor saves money on taxes, freeing up money to reinvest and build wealth.

The Seneca Formula for Cost Segregation Success

At Seneca Cost Segregation, we specialize in creating comprehensive cost segregation studies tailored to your property (or properties) and business needs. 

Our expert team conducts a meticulous analysis, identifying and reclassifying all eligible assets to maximize your tax savings.

You might think such a service would be prohibitively expensive or complicated, and while doing the analysis is complicated, we’ve streamlined it to be straightforward and cost-effective.

Our clients typically see a return on investment of 10-25:1. 

This means for every dollar spent with us, we return $10-$25 back into their pockets.

At Seneca Cost Segregation, we specialize in creating comprehensive cost segregation studies tailored to your property (or properties) and business needs. 

Our expert team conducts a meticulous analysis, identifying and reclassifying all eligible assets to maximize your tax savings.

You might think such a service would be prohibitively expensive or complicated, and while doing the analysis is complicated, we’ve streamlined it to be straightforward and cost-effective.

Our Process

Getting started with a cost segregation analysis has never been simpler. Our three-step approach removes the complexity typically associated with cost segregation services. You understand exactly what to expect at each stage.

Step 1: Free Consultation and Savings Estimate

Your journey starts with a no-obligation consultation where we check your property’s potential for tax savings.

During this first meeting, we look at your property details, purchase price, improvements made, and current tax situation.

What to expect:

  • Property eligibility assessment
  • Preliminary savings estimate based on property type and value
  • Clear explanation of the cost segregation study benefits specific to your situation
  • Transparent discussion of study costs and expected ROI

Once you decide to proceed, we coordinate a convenient virtual property tour.

This approach lets us do a complete property analysis without disrupting your schedule or needing long and costly on-site visits.

Documentation we’ll need:

  • Architectural drawings or blueprints (if available)
  • Purchase agreements and closing statements
  • Construction or renovation invoices
  • Previous depreciation schedules
  • Property tax records

Virtual visit process:

  • Guided tour of all property areas
  • Scheduled at your convenience via video call
  • Digital documentation of building components
  • Real-time component identification and classification

Our engineering team does a complete cost segregation analysis using methods that strictly follow IRS guidelines.

The result is a detailed cost segregation report that gives you and your CPA everything needed to use for tax savings.

Final deliverables include:

  • Complete engineering-based cost segregation report
  • Fixed asset schedule formatted for easy CPA use
  • Supporting documentation and photo evidence
  • Set up guidance and ongoing support

Most studies are completed within 2-4 weeks, significantly faster than the industry standard of 4-8 weeks.

You have two choices: continue paying more than your fair share in taxes or engineer your wealth today. Don’t wait.

Secure your tax savings now.

Cost Segregation for Every Property Type,
Tailored to You

Cost segregation tax benefits aren’t limited to large commercial properties. Our engineering team has analyzed over 10,200 properties across diverse sectors, identifying unique opportunities within each property type.

Single-Family Rental Homes

Common Accelerated Assets: Appliances, flooring, landscaping, lighting fixtures, carpeting, window treatments

Key Benefits: Even smaller properties can generate substantial first-year savings through proper component identification

Common Accelerated Assets: Fitness centres, pools, playground equipment, common area improvements, laundry facilities

Key Benefits: Amenities often qualify for shorter depreciation schedules rather than standard residential timelines

Common Accelerated Assets: Specialized lighting systems, raised flooring, modular walls, technology infrastructure, and built-in furniture

Key Benefits: Generates significant benefits for professional service businesses with modern office features

Common Accelerated Assets: Point-of-sale systems, decorative elements, specialized display fixtures, customer-facing improvements, security systems

Key Benefits: Components typically fall into shorter depreciation categories due to retail-specific features

Common Accelerated Assets: Process-specific equipment, Specialized electrical systems, production-related infrastructure, and material handling systems

Key Benefits: Often qualify for the most aggressive depreciation schedules available

Common Accelerated Assets: Furniture, appliances, decorative elements, guest amenities, spa equipment, conference facilities

Key Benefits: Substantial accelerated depreciation potential due to a high proportion of personal property

Common Accelerated Assets: Kitchen equipment, dining furniture, Specialized ventilation systems, decorative improvements, bar fixtures

Key Benefits: Components often qualify for 5 or 7-year depreciation schedules

Common Accelerated Assets: Specialized medical equipment, patient areas, healthcare-specific improvements, treatment room fixtures

Key Benefits: Unique opportunities due to Specialized healthcare infrastructure requirements

Our cost segregation services adapt to the unique characteristics of each property type, ensuring maximum tax benefits regardless of your real estate investment focus.

Why Choose Seneca Cost Segregation Services?

When you choose Seneca Cost Segregation, you’re not just getting a cost segregation study.  You are making steps toward tax savings and financial benefits.
Our detailed reports include everything you need to present to the IRS, backed by our guarantee of accuracy and compliance.

01

Seneca’s Engineering team has over 12 years of experience in cost segregation

With over 1000+ properties analyzed (from single family rentals to high-rise skyscrapers), the Engineering team follows the CSATG to a T, guiding you through the process and efficiently delivering you a quality IRS-sanctioned report.

02

We use proprietary tech to provide accurate and comprehensive studies

Our Engineering team has created its own technology for taking inventory of the property and creating the report. It is put through compliance testing and allows the Engineering team to be more precise, react to changes faster, and get the most out of every customer project.
03

The savings do not stop at Cost Segregation. We offer complimentary tax assessments

Your CPA mainly deals in compliance. Seneca deals in savings and guiding customers to unlock more from their properties, assets, businesses, and partnerships.

This is why 70% of customers who take the free tax assessment end up engaging past the cost segregation to unlock more savings and protections.

04

AuditDefense: In the unlikely event of an audit, we will defend the report and answer field inquiries from the IRS

We have 0 customers who have been audited, but that doesn’t stop us from including this protection with every study done.
05

Tap into our network of real estate and cost segregation-minded investors, RE agents, tax advisors, investment funds, and CPAs

Seneca is a cost segregation firm, but also a community of investors, buyers, sellers, owners, and folks focused on growth and engineering their wealth. You can tap into our network for additional benefits and opportunities.
06

Excellent customer service

Every customer is assigned an account manager who will guide you from discovery through study completed and answer your and your team’s questions throughout the process.
07

Veteran-owned and started by founders who have invested, built, and sold Real Estate for over a decade

Seneca’s co-founders have scaled multiple companies, served overseas, invested in over 150 properties, and know it takes a specialized team to engineer wealth that unlocks freedom, security, and a fulfilling life.

See Real Results From Property Owners Like You

Real property owners have transformed their tax situations through strategic cost segregation analysis. 

Here are actual results from Seneca clients across different property types:

Property Investment – $5.9M

First Year Tax Savings – $423,006

Future Value (15 Years) – $1,242,452

Property Investment – $420K

First Year Tax Savings – $41,832

Future Value (15 Years) – $122,868

Property Investment –$872K

First Year Tax Savings – $88,582

Future Value (15 Years) –$242,940

Property Investment –$1.87M

First Year Tax Savings –$91,993

Future Value (15 Years) –$270,200

What Our Clients Say

Our track record speaks through the experiences of property owners who have achieved substantial tax savings:

These results demonstrate how cost segregation benefits work across all property types and investment levels.

Frequently Asked Questions (FAQs)

Property owners commonly ask these questions when considering cost segregation services for their investment properties:

What Is A Cost Segregation Study?

A cost segregation study is a tax savings strategy that allows property owners to accelerate depreciation deductions, reducing taxes and increasing cash flow.
It involves analyzing property assets and reclassifying them into shorter depreciation time frames (5, 7, or 15 years) rather than the standard 27.5 or 39 years, allowing for accelerated depreciation deductions.
Property owners of rental properties, commercial real estate, owner-occupied real estate, new builds, or real estate that has had renovations exceeding $450,000 can significantly benefit, as well as real estate professionals who have purchased, constructed, or renovated property in the last 15 years.

Almost any type of real estate property, including office buildings, retail spaces, industrial sites, residential rentals, and special-purpose buildings like hotels or restaurants.

You can perform cost segregation anytime after property acquisition or construction. The best timing is during the year you purchase, build, or renovate to maximize immediate tax benefits.

Cost segregation study costs vary based on property size, complexity, and type. Tax savings typically far exceed costs in the first year alone. We provide a free, no-obligation proposal showing estimated costs and potential savings before any work begins.

Our average client achieves first-year savings of $171,243, ensuring the investment pays for itself many times over.

Yes, renovations often provide excellent cost segregation opportunities. Qualified Improvement Property (QIP) qualifies for 15-year depreciation instead of 39 years.

Key qualifying improvements include:

  • Interior buildouts and tenant improvements
  • HVAC and electrical system upgrades
  • Specialty lighting and technology infrastructure

Our studies are completed in 2-4 weeks. How fast you’ll get the final report depends on the property’s complexity and how quickly details are received from you or your accountant. Rush service available when needed for tax deadlines.

Contact us to discuss your specific timeline requirements and ensure optimal coordination with your tax planning needs.

Thank you for considering Seneca Cost Segregation. We look forward to helping you uncover hidden tax savings and achieve your financial goals.

Don’t Leave Without Checking Your Tax Savings

Use our FREE Cost Segregation Calculator to see how much you could save in taxes this year. Fast, accurate, and IRS-compliant.

“The tax savings achieved with Seneca Cost Segregation made a major impact on my bottom line. I wasn’t aware it was a possibility until they brought the opportunity to me. Their insight and expertise are invaluable.”

– Robert Riskin, Partner (Riskin Partners Estate Group)