Engineer-built cost segregation studies for real estate owners
Every study is prepared and signed by a cost segregation engineer, documented to the IRS Audit Techniques Guide, and built to hold up under review. With 100% bonus depreciation, which applies to qualified property acquired and placed in service after January 19, 2025, the deductions land in year one.
No cost, no obligation. You get an estimated benefit range and a flat-fee quote before any work begins.
IRS Compliant
Engineer-Grade Documentation
Our cost segregation engineers document every asset classification with detailed engineering analysis and cite specific IRS guidelines, court cases, and audit guides, giving you audit-ready documentation built to stand up to IRS review.
Founded by CPAs
5+ Years Deep Tax Expertise
Led by CPAs and cost segregation engineers with 5+ years of specialized experience. We combine deep tax code knowledge with engineering precision to maximize your deductions while ensuring complete compliance.
1,000+ Studies
AI-Powered Statistical Analysis
Our AI learns from 1,000+ completed studies to identify optimal asset classifications for your property type. We use machine learning to analyze market data, construction costs, and IRS guidelines, delivering more accurate results than traditional manual methods.
$1B+ Analyzed
Institutional-Grade Database
Our team has collectively analyzed over $1 billion in commercial real estate across 1,000+ properties in previous roles. This extensive experience powers our AI calculator and ensures every study is backed by real-world data and proven methodologies.
Lifetime Audit Defense
Audit Defense, Built In
We stand behind every study with comprehensive audit defense documentation and expert support if the IRS ever questions your deductions. Our detailed reports include engineering analysis, photos, and legal citations, giving you complete peace of mind.
Ongoing Asset Tracking
What makes us unique:
When you renovate or replace building components (HVAC, flooring, fixtures), we help you write off the old asset's remaining value, creating additional tax deductions beyond your initial study. We track everything for you.
Matthew Gigantelli
Lead Cost Segregation Engineer
ASCSP Member M009-25
“A study is only worth what it survives. We document every reclassification
to the IRS Audit Techniques Guide, so the deduction still stands years later.”
Studies completed
1,000+
Property value analyzed
$1B+
Member, American Society of Cost Segregation Professionals, the body that
sets technical standards for the industry.
What is Cost Segregation
How You Save with Cost Segregation
Turn 27.5-39 year depreciation into 5-15 year write-offs, and with 100% bonus depreciation on property acquired and placed in service after January 19, 2025, capture those deductions in year one.
IRS allows accelerated depreciation on qualifying building components from standard periods
(27.5 years for residential, 39 years for commercial) down to 5, 7, or 15 years.
Get immediate tax deductions and improved cash flow without changing your total depreciation amount.
Example Savings
Standard Approach
$1,000,000 Commercial Property
• Depreciated over 39 years
• Annual deduction: ~$25,640
• Year-one tax savings: ~$8,970 (35% rate)
Recommended
With Cost Segregation
Same $1,000,000 Property
• ~30% reclassified to 5, 7 & 15-year property
• Year-one deduction: ~$150,000
• Year-one tax savings: $52,500
• Net benefit: $43,530 more cash in year one
Actual results vary by property, structure, and tax situation.
Bonus Depreciation: the Rate Turns on Your Acquisition Date
One Big Beautiful Bill (OBBB) - Enacted July 4, 2025
Qualified property acquired and placed in service after January 19, 2025 qualifies for 100% bonus depreciation, permanently. Property acquired before January 20, 2025 and placed in service in 2025 is limited to 40%.
In the 100% branch you can deduct the full cost of qualified assets in year one when combined with cost segregation.
How It Works
Cost segregation identifies building components that can be depreciated faster (5-15 years instead of 27.5-39 years).
With 100% bonus depreciation, which applies to qualified property acquired and placed in service after January 19, 2025, you deduct 100% of those reclassified assets immediately instead of spreading them over years.
Example: $1M Commercial Property
Method
Year 1 Deduction
Tax Savings*
Standard
$25,640
$8,974
Cost Seg Only
$109,700
$38,395
Cost Seg + 100% Bonus
$334,125
$116,944
*Assumes 35% combined tax rate
Current Rates
Property Acquired AND Placed in Service AFTER Jan 19, 2025:
100%
Permanent Rate (OBBB)
Property ACQUIRED BEFORE Jan 20, 2025:
Placed in service in 2023
80%
Placed in service in 2024
60%
Placed in service in 2025
40%
Long production period property and certain aircraft, placed in service in 2025
60% by election
Property is not treated as acquired after a date if a written binding contract for the acquisition was entered into on or before it.
What Changed, and What Now Decides Your Rate
The rate no longer erodes annually. Section 70301 of the OBBB struck the termination clause and the phase-down paragraphs of IRC 168(k), so there is no scheduled step-down to race. What decides your rate is which branch the property falls in, and that is settled by the acquisition date, not by how soon you order a study. OBBB also added qualified production property, which covers certain manufacturing buildings.
Note: Consult with your tax professional for your specific situation. Rates and rules subject to IRS guidelines.
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Peace of Mind
Learn More About Audit Protection
Every study includes comprehensive audit support, so you can file with confidence knowing we stand behind our work.
Engineer-Grade Reports
Every study includes detailed engineering analysis built around IRS Cost Segregation Audit Technique Guide documentation expectations
Legal Citations Included
We reference specific IRS guidelines, audit guides, and relevant court cases
Lifetime Coverage
Audit support lasts for the life of the study, not just the first year
What's Included
Our audit protection means you're never alone if the IRS has questions about your cost segregation study.
Full Documentation Support
We defend all asset classifications and basis allocations with detailed engineering analysis, IRS citations, and court case references.
Direct IRS Response Support
If the IRS questions any element of the study, simply forward us their inquiries. We'll prepare detailed responses and provide clarity for you to submit with your CPA.
Expert Representation
Should an audit proceed to advanced stages, we represent our firm's methodology and defend our classification process, providing additional clarity and IRS-compliant documentation.
How Audit Support Works
1
Receive IRS Inquiry
If the IRS questions your cost segregation deductions, forward their inquiry to us immediately.
2
We Prepare Your Response
Our team analyzes each question and prepares comprehensive, IRS-compliant responses with supporting documentation.
3
Submit with Your CPA
You and your CPA review our responses and submit them to the IRS auditor with confidence.
4
Ongoing Support
We remain available throughout the audit process to defend our methodology and classifications.
Important: Our liability is limited to the study fee. Audit protection covers our professional support and defense of our work product, classifications, and methodology. Tax outcomes remain subject to IRS review and your individual tax situation.
Testimonials
What Our Clients Say
We're trusted by individual property owners, short-term rental hosts, multifamily
operators, investment firms, and syndicators across the country.
Client feedback from completed studies, shared with permission. First names only, with
property and location details generalized to protect client privacy.
Why Partner With Us
Tax Optimization Built For Property Owners
We're revolutionizing cost segregation with technology and expertise, making advanced tax strategies accessible to all commercial property owners and real estate investors.
Industry-First AI Cost Seg
Our AI-powered platform allows us to be the first in the industry to offer detailed engineering at a DIY price. Expert analysis, AI backed process, at a low cost.
Engineering-Based Approach
We utilize satellite imagery, advanced photo processing, and mobile documentation to create comprehensive property analyses, not just estimates like traditional services.
AI + Human Expert Review
Our proprietary AI identifies qualifying assets, then certified engineers and tax professionals review every report for accuracy and maximum savings.
IRS-Ready Documentation
Our documentation includes detailed asset-by-asset breakdowns, methodology notes, and supporting files designed to help your CPA review and file with confidence.
Ongoing Tax Optimization
We track your assets and provide guidance on future renovations to help you maximize tax deductions year after year, integrating seamlessly with your CPA.
Accessible to All Property Owners
Our mission is to make cost segregation and advanced tax strategies accessible to all commercial property owners, not just the wealthy. We educate and empower clients to benefit from these powerful IRS programs.
Beyond the Report
Maximize Tax Savings Today & Tomorrow
Get immediate tax deductions with cost segregation, plus ongoing benefits when you renovate or replace building components.
Future Tax Savings from Renovations
We track all your assets in our secure portal. When you replace HVAC, flooring, or other components, you can write off the old asset's remaining value, creating additional tax deductions beyond your initial study.
Integrated CPA Services
Work directly with your existing CPA or leverage our certified tax professionals.
We ensure seamless integration with your accounting workflow and provide ongoing tax strategy consulting.
Renovation Tax Strategy
Planning a renovation? Our report helps you maximize deductions by identifying which old components can be written off when replaced, a strategy that can save thousands more in future years.
PAD
PARTIAL ASSET DISPOSITION REPORT
Generated: Nov 15, 2024
Property: Building A
ID: #8821-B
Renovation Impact Analysis
Partial Asset Disposition Calculation
Asset Description
Value
Status
Roof Replacement (New)
Placed in Service: Nov 2024
$45,000
Capitalized
Roof (Original)
Disposed: Nov 2024
$12,500
Write-off
HVAC Units
Remaining Useful Life: 5 yrs
$28,000
Depreciating
Total Tax Deduction
$12,500 (Immediate)
New Asset
Disposition
FreeCostSeg.com • Professional Tax Engineering
Cost Segregation & Ongoing Tax Benefits
Get immediate tax savings through accelerated depreciation, then use our asset tracking to maximize deductions on future renovations and replacements.
Cost Segregation
Renovation Tax Benefits
Asset Tracking
Tax Advisory
About Us
Revolutionizing Cost Segregation
We combine cutting-edge AI with tax expertise to make powerful depreciation
strategies accessible to all commercial property owners.
Vision & Leadership
Our leadership team brings extensive private equity acquisition experience, using cost segregation to optimize cash flow. Driven by a mission to democratize tax strategies previously accessible only to large investors.
Technical Expertise
Our team combines experience from civil engineering and construction with advanced multimodal AI technology.
IRS Examiner Perspective
Our educational content includes IRS examiner perspective from James C. Peacock, a technical contributor and former IRS General Engineer with 38.5 years at the IRS. James co-contributed to the Cost Segregation Audit Technique Guide and served as the IRS's primary technical expert on Section 179D from 2014 through 2025.
Backed by Schneider Ventures Accelerator, which funds innovative real estate technology businesses, and supported by top national real estate investors who have been using cost segregation for years.
IRS examiner perspective
James C. Peacock, Former IRS General Engineer
James spent 38.5 years at the IRS, co-contributed to the Cost Segregation Audit Technique Guide, and served as the IRS's primary technical expert on Section 179D from 2014 through 2025. His educational contributions help property owners understand what examiners look for: land support, RS Means detail, site evidence, and documentation that survives an IDR.
"Making cost segregation accessible to all property owners, not just the wealthy."
Our Team's Experience
Our team brings extensive experience from their previous roles
$1B+
Real estate analyzed in previous roles
1,000+
Properties our experts have collectively analyzed
100%
Success rate our tax specialists have maintained defending IRS audits
Meet Our Lead Engineer
Led by Industry Veteran Matthew Gigantelli
Lead Expert
Matthew Gigantelli
Lead Cost Seg Engineer
5+ Years Experience
1000s of Studies
ASCSP M009-25
Member of American Society of Cost Segregation Professionals (ASCSP)
Proven Track Record
With over 5 years of specialized experience in cost segregation engineering, Matthew has successfully completed hundreds of studies across multiple organizations, helping property owners maximize their tax savings.
Leadership Experience
Most recently serving as Head of Product for Cost Segregation, Matthew brings deep product expertise and strategic oversight to ensure our analyses exceed industry standards and deliver maximum value to clients.
Member of ASCSP
Matthew is a proud member of the American Society of Cost Segregation Professionals (ASCSP), holding membership number M009-25. Established in 2006, ASCSP is the leading non-profit organization dedicated to education, technical standards, and ethical practices in the cost segregation industry, ensuring Matthew adheres to the highest professional standards.
