Cost segregation for Hilo property investors
Big Island commercial center with hospitality, multifamily, and retail. Whether you own a single property or a portfolio in Hilo, 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 Hilo 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.
Hawaii market context
Hawaii's economy runs on tourism, with hospitality and STR product driving most cost segregation work. High purchase prices mean even modest reclassification percentages produce substantial deductions.
Every TDA Hilo study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.