Cost segregation for San Francisco property investors
Office and luxury multifamily; newer construction reclassifies cleanly despite recent market headwinds. Whether you own a single property or a portfolio in San Francisco, 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 San Francisco 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.
California market context
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.
Every TDA San Francisco study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.