Why cost segregation works in California
California is the largest U.S. real estate market by basis, but high state income tax rates make federal cost segregation deductions especially valuable. California decouples from federal bonus depreciation, so studies model both federal and California books separately. An engineering-based cost segregation study reclassifies components of your California 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 California markets we serve
- Class A multifamily and mixed-use across coastal MSAs
- Industrial and last-mile distribution in Inland Empire and Central Valley
- STR and hospitality on the coast and in mountain markets
Every California study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.