Fixed Asset Management
Take a look at our various studies to help you enjoy massive real estate deductions!
Cost Segregation
What is cost segregation?
“Cost seg”, as we call it, is a tax strategy that allows us to segregate all items in a building that do not consist of the structure or land, and take the total amount as tax deduction. Eligible items that can be written off include interior elements (kitchen appliances, lighting, etc) and landscaping. We are typically able to provide clients a deduction equal to about 20-30% of the purchase price.
Land does not depreciate, and building structures are subject to a fixed depreciation schedule under the tax code (27 ½ years for residential, 39 years for commercial). Interior elements typically depreciate on a 5 year schedule, and landscaping on a 15 year schedule. Under the One Big Beautiful Bill, 100% bonus depreciation is back, which means we can now take all those interior elements and landscaping as a first-year tax write off, rather than taking the deductions spread out over the full depreciation period!
How can I maximize deductions?
The total amount of deductions will fluctuate based on land value and whether the property was recently updated. For example, beachfront property will have higher land value, so the percentage of deductions from a cost seg study will be lower. On the other hand, a newly renovated/newly built property will have a higher percentage of deductions because the interior elements we can write off are more expensive. If you’re interested in multiple properties, we are always happy to provide a free estimate of potential deductions!
Disposition of Assets
A Disposition of Assets Study helps property owners and businesses maximize tax savings when disposing of, renovating, or demolishing assets. By identifying and segregating the value of building components and equipment, this study allows you to write off the remaining tax basis of retired assets in the year they are disposed of rather than waiting for standard depreciation schedules to run their course.
Our team conducts a detailed analysis of your property, documentation, and asset records to ensure compliance with IRS regulations while uncovering every eligible deduction. Whether you’re renovating an office building, replacing outdated equipment, or tearing down part of a structure, a Disposition of Assets Study ensures you capture the maximum tax benefits with accuracy and confidence!
Key Benefits:
Accelerated tax deductions on disposed assets
Detailed, IRS-compliant documentation
Improved cash flow and reduced tax liability
Seamless integration with cost segregation studies
Capital Expenditures
A Capital Expenditures Study helps property owners and investors accurately identify and classify costs associated with improvements, renovations, and new construction projects. By analyzing your capital investments in detail, this study ensures expenses are properly allocated for depreciation, tax deductions, and long-term asset planning.
Our experts review invoices, construction records, and project documentation to distinguish between capital improvements and routine maintenance, ensuring IRS compliance and uncovering opportunities for accelerated depreciation. Whether you’re upgrading a commercial property, renovating multifamily housing, or building a new facility, a Capital Expenditures Study provides the clarity you need to optimize tax savings and maximize return on investment!
Key Benefits:
Proper classification of capital improvements vs. repairs
Accelerated depreciation opportunities for eligible costs
Enhanced tax compliance and documentation
Strategic insights for long-term asset management
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