Cost Segregation Studies

Accelerating Depreciation to Power Institutional Growth

For owners of high-value commercial real estate—including private equity portfolios, family offices, and middle-market developers—every dollar of deferred tax is a dollar of working capital that can be reinvested into new acquisitions or property improvements. Standard 39-year depreciation is an inefficient use of capital. You need a strategic partner who can deconstruct your assets to accelerate your return on investment.

We provide the technical rigor that withstands scrutiny. Cost segregation is an engineering-intensive discipline that requires more than just an accounting perspective. At Calvetti Ferguson, we combine engineering expertise with sophisticated tax knowledge to “rebuild” your property on paper. We ensure that every eligible component is reclassified for maximum immediate deduction, providing the institutional-grade substantiation required by the IRS.

Maximizing Cash Flow Through Technical Precision

Our engineering-based approach identifies, classifies, and values every component of your property to move assets into shorter depreciable lives (5, 7, and 15 years).

Engineering-Based Substantiation

The quality of a study is defined by its ability to hold up under IRS review. We prioritize an “audit-ready” methodology.

• • • On-Site Verification: Our experts conduct physical inspections and photograph your property to inventory components—from MEP (mechanical, electrical, plumbing) systems to specialized flooring—ensuring every deduction is defensible.

    • Construction Cost Estimating: We use advanced engineering techniques to estimate the cost of building components when original invoices are insufficiently detailed.

    • 100% Bonus Depreciation Strategy: We help you capitalize on the One Big Beautiful Bill Act (OBBBA), which restored 100% bonus depreciation for qualified assets, enabling massive first-year write-offs.

Strategic Portfolio Application

Cost segregation is a flexible tool that can be applied across the entire real estate lifecycle.

• • • New Construction & Acquisitions: Implementing a study at the time of purchase or completion to maximize day-one cash flow.

    • Renovations & Tenant Improvements: Identifying “partial disposition” opportunities to write off the remaining basis of demolished components.

    • Look-Back Studies: Analyzing properties placed in service in prior years to capture “catch-up” depreciation without the need for an amended return (via Form 3115).

Specialized Sector Expertise

We understand that the “segregable” components of an industrial warehouse are vastly different from those of a medical office or a luxury multi-family complex.

• Manufacturing & Industrial: Identifying specialized process piping, reinforced flooring, and heavy-duty electrical systems.

• Multi-Family & Hospitality: Reclassifying cabinetry, decorative finishes, land improvements, and complex HVAC systems.

• Medical Real Estate: Highlighting specialized plumbing, medical gas distribution, and reinforced structural elements.

• Retail & Mixed-Use: Capturing the value of exterior improvements, signage, and high-spec tenant finish-outs.

Why Choose Calvetti Ferguson?

We offer a multidisciplinary approach that bridges the gap between the “dirt and steel” of your assets and the technical requirements of the tax code.

• PE-Backed Focus: We understand the pressure to drive IRR. Our studies are designed to professionalize your portfolio reporting and maximize after-tax cash flow for your investors.

• Big 4 Technical Rigor, Mid-Market Agility: We deliver the sophisticated, engineering-led reports expected by institutional lenders and boards, with the senior-level responsiveness your team needs.

• Integrated Tax Planning: We don’t just hand you a report; we integrate the findings into your broader tax strategy, considering the impacts of Section 163(j) interest limitations and depreciation recapture.

Ready to Unlock Your Hidden Capital?

Don’t let your capital sit trapped in 39-year depreciation. Let’s build the transparent, high-integrity study your portfolio deserves—partner with a firm that understands the intersection of real estate engineering and enterprise value.

Contact Our Team