Question 1

What is a cost segregation study?

Accepted Answer

A cost segregation study is an IRS-recognized analysis that reclassifies building components into shorter depreciation categories (5, 7, and 15-year property) instead of the standard 27.5 or 39-year schedule. This accelerates depreciation deductions and reduces income taxes in the early years of property ownership.

Question 2

How much does a cost segregation study cost?

Accepted Answer

Caliber Cost Segregation studies are fixed-price: $3,995 for properties under $1.5M, $5,995 for properties between $1.5M and $3M, and $7,995 for properties between $3M and $7M. You see your estimated first-year tax savings before you pay. Estimated first-year income tax savings are typically 5 to 15 times the study fee — illustratively, $20,000–$60,000 on a $4,000 study — and vary with the property, its cost basis, and your tax rate.

Question 3

Is bonus depreciation still available in 2025?

Accepted Answer

Yes. The One Big Beautiful Bill Act, signed July 4, 2025, permanently restored 100% bonus depreciation for qualified property acquired after January 19, 2025. For that property, the 5, 7, and 15-year components identified by a cost segregation study can generally be deducted in full in the first year. Property acquired earlier follows the prior phase-down schedule, so every study applies the rate that matches the property's acquisition and placed-in-service dates.

Question 4

Do I need a site visit for a cost segregation study?

Accepted Answer

Virtual site visit in most cases; an on-site visit when the property requires it. Your Cost Segregation Professional conducts the virtual visit from a detailed property questionnaire, your photos, and the documents you upload. Studies are delivered in one to two weeks from complete intake.

Question 5

Will a cost segregation study trigger an IRS audit?

Accepted Answer

Cost segregation is an IRS-recognized tax strategy with its own Audit Techniques Guide (ATG). The ATG lists preparation by an individual with expertise and experience as the first element of a quality study. Every Caliber Cost Segregation study is Signed & Certified by a Cost Segregation Professional — CCSS-certified by the National Board of Cost Segregation Specialist (NBCSS) — follows the ATG, and includes full legal citations so it is prepared to stand up to examination.

Question 6

Can I do a cost segregation study on a property I bought years ago?

Accepted Answer

Yes. A lookback study (filed with IRS Form 3115) allows you to claim all missed accelerated depreciation from prior years in a single tax year — no amended returns required. Caliber Cost Segregation offers lookback studies as an add-on.

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