Cost segregation for Birmingham property investors
Largest metro and a healthcare and finance hub. Cost seg studies on medical office, multifamily, and downtown adaptive-reuse properties typically reclassify near the top of normal ranges. Whether you own a single property or a portfolio in Birmingham, an engineering-based cost segregation study reclassifies components of your building 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 in your Birmingham study can be deducted in year one. For a typical property in this market, that often translates to 20–35% of cost basis reclassified into shorter recovery periods.
Alabama market context
Alabama combines a low cost of doing business with strong industrial, automotive, and aerospace corridors. Commercial real estate investors find affordable basis on warehouses, multifamily near major employment centers, and retail strips serving growing suburbs.
Every TDA Birmingham study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.