Why cost segregation works in Arizona
Arizona is one of the fastest-growing states for population and commercial development. Phoenix-area industrial, build-to-rent, and STR product see heavy cost segregation activity, with newer construction typically reclassifying 22–30% of basis. An engineering-based cost segregation study reclassifies components of your Arizona property from 27.5- or 39-year real property into 5-, 7-, and 15-year MACRS class lives. Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has been restored for qualifying property acquired and placed in service after January 19, 2025 — meaning every dollar of accelerated property identified can be deducted in year one.
Major Arizona markets we serve
- Industrial and last-mile distribution in Greater Phoenix
- Build-to-rent and multifamily in Maricopa and Pinal counties
- Short-term rentals in Scottsdale, Sedona, and Flagstaff
Every Arizona study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.