Unlock massive tax savings with engineer-built cost segregation

Keep tens of thousands more in your pocket this tax season, backed by our engineering and CPA team for one transparent, low flat fee.

Talk to a cost seg engineer See a real 64-page engineer study

Free 60-second online savings estimate • For single-family rentals, Airbnbs, multifamily & commercial properties.

IRS Compliant
Founded by CPAs
1,000+ Studies
$1B+ Analyzed
Lifetime Audit Defense
Ongoing Asset Tracking
Engineering & CPA Firm

Engineered for Maximum Tax Savings

Every study is prepared by our cost segregation engineers and CPAs to maximize your year-one deductions, built to pass every IRS Audit Techniques Guide standard, and delivered with CPA-ready fixed asset schedules.

Studies completed
1,000+
Real estate analyzed
$1B+
American Society of Cost Segregation Professionals

Engineering leadership accredited by the American Society of Cost Segregation Professionals (ASCSP).

What is Cost Segregation

How You Save with Cost Segregation

Reclassify qualifying building components from 27.5 or 39 years into 5, 7, and 15-year schedules. With 100% bonus depreciation on property acquired and placed in service after January 19, 2025, you can capture those deductions in year one.

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 (30x+ ROI on study fee)

Most residential studies total $1,200 to $1,600, delivering 30x to 70x+ first-year return on the study fee. Actual results vary by property, structure, and tax situation.

IRC § 168(k) Statutory Briefing

Bonus Depreciation: The Rate Turns on Your Acquisition Date

One Big Beautiful Bill (OBBB) — Enacted July 4, 2025

Section 70301

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 short-life assets in year one when combined with an engineer-prepared cost segregation study.

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 decades.

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 Statutory Rates

Property Acquired AND Placed in Service AFTER Jan 19, 2025
100%
Permanent Statutory Rate (OBBB)
IRC § 168(k)
Property Acquired BEFORE Jan 20, 2025
Placed in service in 202380%
Placed in service in 202460%
Placed in service in 202540%
Long production period property & certain aircraft (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. Statutory rates and binding-contract rules are governed by IRC § 168(k).
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45 Property-Type Planning Bands

Typical Short-Life Reclassification by Property Type

Share of depreciable building basis typically reclassified into 5-year personal property and 15-year land improvements across our published engineering planning bands.

Explore all 45 property bands →
Standalone Single-Family
24% to 34%

5-Year: 16% to 22% | 15-Year: 8% to 12%

Appliances, flooring, cabinetry, millwork, driveways, fencing, and exterior site improvements.

Small & Mid-Size Multifamily
22% to 34%

5-Year: 16% to 24% | 15-Year: 6% to 10%

Unit flooring, cabinetry, appliances, dedicated electrical/plumbing, parking lots, and landscaping.

Quick & Full-Service Restaurants
28% to 44%

5-Year: 20% to 32% | 15-Year: 8% to 12%

Commercial kitchen hood and grease systems, walk-in coolers, specialized lighting, signage, and site paving.

Low-Rise & Medical Office
20% to 34%

5-Year: 12% to 22% | 15-Year: 8% to 12%

Tenant build-outs, demountable partitions, data cabling, medical gas/plumbing, and exterior site work.

Full-Service Hotels & Resorts
26% to 40%

5-Year: 16% to 24% | 15-Year: 10% to 16%

FF&E packages, guestroom finishes, hospitality laundry/kitchen systems, pools, and site lighting.

Warehouses & Self-Storage
15% to 42%

5-Year: 5% to 28% | 15-Year: 10% to 16%

Heavy power distribution, loading docks, security fencing, drive aisles, and climate-control systems.

Bought in a Prior Tax Year?
Look-Back Studies & IRS Form 3115 Catch-Up

You do not have to run a study in the exact year you bought the building. For properties placed in service in prior tax years, a look-back engineering study where Form 3115 may be appropriate lets you claim missed catch-up depreciation on your current tax return without amending prior returns.

IRC § 481(a) catch-up schedule included Check prior-year property →
Verify Our Work Before You Order
Inspect a Real 64-Page Engineer-Signed Study

Most providers hide their deliverable behind a sales call. Review our complete 64-page engineering report online, including CSI MasterFormat cost allocations, component methodology, legal citations, and Matthew Gigantelli’s engineer sign-off.

Ungated 64-page PDF & interactive viewer View 64-page sample report →
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.

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 Property Owners & CPAs Choose Us

Engineered for Maximum Deductions & IRS Defense

As an AI-assisted engineering study firm, we combine engineer-led cost segregation analysis with technology-driven efficiencies to deliver full IRS-defensible studies at transparent flat fees.

Technology-Driven Efficiencies

As an AI-assisted engineering study firm, we use modern technology to automate data gathering, cost indexing, and component research, delivering full engineer-signed studies at a fraction of traditional firm fees.

ASCSP-Accredited Engineering Team

Every study is prepared and signed by our engineering team using RS Means construction cost reconstruction, site verification, and the 13 principal elements of the IRS Audit Techniques Guide.

Work-Based Flat-Fee Pricing

Study fees range from $1,200 to $5,000 based on engineering scope, with most residential studies totaling $1,200 to $1,600 (delivering 30x to 70x+ first-year ROI)—never a percentage of your tax savings.

CPA-Ready Fixed Asset Schedules

You receive a 60+ page engineering report PDF plus Excel/CSV fixed asset schedules with CSI MasterFormat allocations and MACRS recovery periods ready for immediate import into your CPA’s tax software.

Look-Back & Form 3115 Support

Purchased or renovated in a prior tax year? We build retroactive depreciation schedules and IRC § 481(a) calculations where Form 3115 may be appropriate so you can claim catch-up deductions without amending prior returns.

Partial Asset Disposition Tracking

We break out roofs, HVAC units, windows, and interior finishes individually so when you renovate in future years, your CPA can write off the retired component’s remaining basis immediately.

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
How It Works & Pricing

From Address to Audit-Ready Study in 3 Steps

A streamlined engineering workflow designed for rental and commercial property owners, with transparent, work-based flat-fee pricing upfront.

01 60 Seconds Online

Free Benefit Estimate & Flat-Fee Quote

Enter your property address in our interactive calculator or submit your property details below. You see your estimated 5-, 7-, and 15-year reclassification range and exact study fee before any work begins.

Run instant calculator →
02 15 to 20 Min Walkthrough

Document Review & Virtual Site Inspection

Upload your closing statement or construction cost records and complete a guided virtual site walkthrough. Our engineers verify every building system and land allocation without weeks of scheduling delays.

Closing statement + guided photo/video verification
03 1 to 2 Weeks Delivery

Engineer-Signed Study & CPA Schedule

Receive your 60+ page IRS Audit Techniques Guide engineering report signed by our cost segregation engineering team, plus Excel/CSV fixed asset schedules ready for your CPA and backed by lifetime audit defense.

Preview 64-page deliverable →
Transparent Flat-Fee Pricing

Priced by Engineering Scope, Never a Percentage of Your Savings

Most residential owners pay $1,200 to $1,600 total—typically generating a 30x to 70x+ first-year return on the study fee. Every tier includes a full engineer-signed report, CPA-ready Excel/CSV schedule, and lifetime IRS audit defense.

See full pricing breakdown →
Most Popular
Residential & Small Property
$1,200 - $2,500

Single-family rentals, condos, short-term rentals (Airbnb / VRBO), and 2 to 4 unit residential properties. Most studies total $1,200 to $1,600.

30x to 70x+ typical first-year ROI • Traditional firms quote $3,000 to $9,000
Standard Commercial
$2,500 - $5,000

Office buildings, retail strip centers, restaurants, self-storage, warehouses, and 5 to 20 unit multifamily buildings.

Traditional firms typically quote $5,000 to $15,000
Large & Complex Assets
$5,000+

Hotels and hospitality, 21+ unit apartment complexes, large industrial facilities, and $10M+ commercial properties.

Traditional firms typically quote $10,000 to $35,000+
About Us

Built by Engineers, CPAs & Former IRS Examiners

We combine civil and construction cost engineering with technology-driven efficiencies to deliver institutional-grade depreciation studies for rental and commercial property owners.

Engineering & CPA Leadership

Founded by cost segregation engineers, CPAs, and real estate professionals whose team has collectively analyzed over $1B in real estate in previous roles, building the exact engineering-grade cost segregation firm we wished existed for our own portfolios.

Engineering & Cost Reconstruction

Our team combines civil and construction engineering, RS Means cost estimating, and IRS examination perspective with AI-assisted engineering workflows so every component is defensibly supported.

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.

JPeacockCSA.com

Investor Backed

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.

James C. Peacock, former IRS General Engineer

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 stands up to every IRS standard.

Read the IRS engineer guide JPeacockCSA.com

Modern CFO's Mission

"Unlocking immediate first-year cash flow for real estate owners—turning decades of trapped building depreciation into capital you can reinvest today."

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

Matthew Gigantelli - Lead Cost Seg Engineer
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.

Expert-Led Analysis with Proven Results
Get Your Expert Analysis
FAQ

Frequently Asked Questions

Learn more about our cost segregation service and how we can help you save on taxes.

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See Your Property’s Tax Savings & Flat-Fee Quote

Pick a time on our engineering calendar now, or send your property address and contact details so our engineers can prepare your benefit analysis and flat-fee quote before reaching out.

Book a 20-minute engineer review

Walk through your property’s depreciable basis, projected year-one deduction, and exact flat-fee study quote live with our team.

Or send your property details

Not ready to pick a calendar slot right now? Share your property address and contact details so an engineer can prepare your benefit range and flat-fee study quote first, then follow up to walk you through your numbers.

So a cost seg engineer can walk you through your numbers.