Engineering-Based Cost Segregation Studies

Turn your building into tax deductions.

If you own an investment property, you need a cost segregation study. TDA delivers IRS-compliant, engineering-based studies that accelerate your depreciation, unlock 100% OBBBA bonus depreciation, and put more cash back in your pocket in year one.

$
Our clients claim an average of $84,000 in Year 1 · $315,000 over 10 years. Based on TDA studies of $1M–$3M investment properties under OBBBA 100% bonus depreciation.
Modern glass and steel office tower seen from below against a clear, hazy sky, sunlight flaring off the glass
✓Engineering-based methodologyThe IRS-preferred approach per the Cost Segregation Audit Techniques Guide.
✓OBBBA-readyStudies model 100% bonus depreciation under current law.
✓Double Our Fee GuaranteeIf we can't double our fee worth of deductions in the first full financial year, there is no charge for our services.
✓Free feasibilityNo-cost projection before you commit to a study.
Nationwide coverage

Find out what your property could save you. Free.

No commitment. We model the exact deductions before you spend a dollar.

How it works

Three steps to your first-year tax deduction

From our free feasibility to a completed report - we handle the engineering so your CPA can claim you the maximum savings.

1

Qualify your property

Send us the address and purchase price. We deliver a free feasibility report shortly, showing projected first-year deductions and ROI.

Free estimate →
2

Engage TDA

Engineering team analyzes construction documents, and itemizes building components against MACRS class lives and OBBBA bonus depreciation rules.

See our process →
3

Claim maximum deductions

You receive a study with engineering takeoffs and RSMeans cost data. Your CPA files; you keep the cash.

Talk to a specialist →
20–35%
of cost basis typically reclassified
100%
bonus depreciation under OBBBA
5–12%
NPV tax savings, % of purchase price
$0
cost for the upfront feasibility analysis
Why now

OBBBA brought 100% bonus depreciation back. Cost segregation is how you use it.

The One Big Beautiful Bill Act restored 100% bonus depreciation for qualifying property acquired and placed in service on or after January 19, 2025. That means every dollar of 5-, 7-, and 15-year property identified in a cost segregation study can be deducted in year one — instead of dragging out over 27.5 or 39 years.

For a $2 million commercial building, that often translates to $300,000–$600,000 of accelerated first-year deductions, depending on building type and structure.

How OBBBA changes the math

Without cost segregation
$51,282
Year-one depreciation on a $2M commercial property (39-year SL)
With cost segregation + 100% bonus
$451,282
Year-one depreciation when 25% of basis is reclassified to short-life property
Federal tax saved at 37%
~$148,000
Cash kept in your pocket, reinvestable today
Our process

Four steps from feasibility to filed return

Engineering-based cost segregation isn't a spreadsheet. It's a defensible study built on construction documents and current IRS guidance.

1

Free feasibility

Send us the property address, purchase price, and date placed in service. We model expected reclassification and projected first-year deduction at no cost.

2

Engagement & data collection

We collect closing documents, depreciation schedule, construction drawings, and any TI/CapEx history. A site inspection is scheduled.

3

Engineering analysis

Our team itemizes building components, applies MACRS class lives per IRS audit guidance, and quantifies costs using accepted estimating standards.

4

Report & tax filing

You receive a report ready for your CPA to use in your tax return.

See the full process
Engineering-based
IRS-preferred
Per the Cost Segregation Audit Techniques Guide, an engineering-based study is the most defensible methodology.
Why TDA

Built by depreciation specialists. Defended like our reputation depends on it.

TDA is a depreciation-only firm. We don't sell software, audits, or tax prep — we do one thing, the right way, with engineering rigor and tax-code precision.

  • Engineering-based methodology. Component-by-component itemization with site inspection and construction document review — the gold standard the IRS itself recommends.
  • Current with OBBBA. Studies model the restored 100% bonus depreciation and the interaction with Section 179, QIP, and the real estate professional / STR rules.
  • CPA-ready deliverables. Asset detail by MACRS class, depreciation schedule by year — everything your tax preparer needs.
  • Free, no-obligation feasibility. We tell you upfront whether a study makes economic sense for your property. If it doesn't, we say so.
More about TDA
Case studies

How we’ve transformed our clients’ tax deductions

Real outcomes across asset classes — numbers shown are typical mid-range results for OBBBA-era studies.

Multifamily
$680,000first-year deduction
Class B garden apartment · $4.2M basis · 28% reclassified

A 96-unit garden-style multifamily in Texas. Site-improvement-heavy lot drove an above-average reclassification. Owner saved ~$252K federal tax in year one at a 37% bracket.

Short-term rental
$118,000first-year deduction
Lakefront STR · $640K basis · 31% reclassified

An Airbnb in the Smokies with extensive deck, hot tub, and decorative finishes. STR strategy let the owner offset W-2 income directly — ~$44K of cash tax saved.

Commercial office
$1.4Mfirst-year deduction
Class A office · $9.8M basis · 22% reclassified

Suburban Class A office with structured parking, dedicated electrical, and high-end TI buildouts.

Hospitality
$2.1Mfirst-year deduction
Limited-service hotel · $7.5M basis · 36% reclassified

A 110-key hotel in Florida. FF&E plus decorative finishes drove one of our highest reclassification ratios — ~$777K cash tax saved.

Warehouse / industrial
$540,000first-year deduction
Last-mile distribution · $3.6M basis · 18% reclassified

Tilt-up industrial in the Inland Empire. Heavy paving, racking, and dedicated process electrical. Lower % reclassification but very high absolute dollars.

Medical office
$390,000first-year deduction
MOB suburb · $2.4M basis · 27% reclassified

A 22,000 sq ft medical office. Specialty plumbing, dedicated electrical, and lab/imaging buildouts created one of the richest reclassification profiles we see.

See what your property could save
Real investors, real savings

The kind of clients TDA works with every day

From single-property landlords to multi-state syndicators — we deliver studies that hold up to IRS scrutiny and put real cash back in their pockets.

Two-story single-family rental home with stone and siding exterior in a US suburban neighborhood
Single-family rentals
$200K – $500K basis
Real estate syndicator team meeting
Syndicators
Multifamily & hotel portfolios
Accountants reviewing financial charts and depreciation schedules around a conference table
CPA firms
Referring for their clients
Commercial property investor at building
Commercial owners
Office, retail, industrial
Trusted by

CPAs, syndicators, and property owners across the country

TDA partners with CPA firms, real-estate syndicators, and individual investors — we offer a priority-service partner program for referrers.

CPA Partner
CPA Partner
Syndicator
Wealth Mgr
CPA Partner
RE Investor Group
Become a referral partner

See what cost segregation could be worth on your property.

Send us the address + purchase price. We come back with a full feasibility shortly — no obligation.

Frequently asked

Quick answers about cost segregation

What is a cost segregation study?

A cost segregation study is an engineering-based analysis that reclassifies components of a building from 39-year (commercial) or 27.5-year (residential rental) real property into 5-, 7-, and 15-year MACRS class lives. The reclassification accelerates depreciation deductions, reducing current-year federal taxable income for property owners.

How much can I save with a cost segregation study?

Typical commercial properties reclassify 20–35% of cost basis into shorter recovery periods. Combined with 100% bonus depreciation under OBBBA, that produces first-year deductions in the range of 6–12% of purchase price. Net present value of the tax savings commonly ranges from 5% to 12% of acquisition cost depending on building type and your tax bracket.

Does OBBBA really restore 100% bonus depreciation?

Yes. The One Big Beautiful Bill Act restored 100% bonus depreciation on qualifying property acquired and placed in service on or after January 19, 2025. Cost segregation is the mechanism that identifies which components of a building qualify, making it more valuable than at any time since 2022.

How long does a study take?

Most studies are delivered within 3–5 weeks of engagement. Rush turnaround is available for year-end or transaction deadlines.

Read the full FAQ