Why cost segregation works in Hawaii
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. An engineering-based cost segregation study reclassifies components of your Hawaii 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 Hawaii markets we serve
- Resort hotels and luxury STRs
- Multifamily in Honolulu and Oahu
- Mixed-use and retail in tourism corridors
Every Hawaii study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.