Tax Services / Cost Segregation

Uncover federal tax savings hiding in your real property

If your business has recently constructed, renovated, or acquired real property, you may be eligible to significantly accelerate depreciation deductions and defer federal taxes. At hfco, our cost segregations combine engineering expertise, cost estimating, accounting knowledge, and tax authority proficiency to identify legitimate opportunities and document it rigorously.

Identify hidden tax savings through accelerated depreciation

Cost segregation is the process of separating personal property and land improvements from real property for federal tax reporting purposes, with the goal of uncovering accelerated depreciation opportunities.

By applying cost segregation studies to acquisitions, construction and building improvement projects, we help clients determine whether they qualify to reduce and defer their tax obligations.

Our process will:

Segregate construction costs into proper categories for federal tax depreciation purposes
Maximize dollars allocated to personal property (5-, 7-, and 15-year write-off categories) versus real property (39-year write-off)
Identify accelerated depreciation eligibility that provides faster write-off and significant cash flow benefits

Capital Gains Taxes on Real Estate

Before a great strategic plan comes a clear-eyed assessment of where you are today.

Selling real estate can mean a significant tax bill — but the right planning can change the outcome. This piece breaks down how capital gains taxes work on property sales, what the IRS Section 121 exclusion covers (up to $500,000 for married couples filing jointly), and where homeowners and investors most commonly get caught off guard.

Dave Gill is always very responsive and I feel like hfco truly has my best interests at heart. They’re not just thinking about my businesses; they’re thinking about my family, my personal goals, and my overall tax situation.

Rob DePiero, Founding Principal

VanRock Properties

What businesses ask about cost segregation

What types of properties qualify for a cost segregation study?

Commercial properties of nearly every type can benefit, including office buildings, retail spaces, industrial facilities, warehouses, restaurants, hotels, healthcare facilities, and apartment complexes. Studies are most beneficial for properties with total construction or acquisition costs above $800,000.

Can a cost segregation study be applied to older properties?

Yes. A look-back study can be applied to properties placed in service in prior years, often without amending prior tax returns. The cumulative depreciation benefit can be recognized in the year the study is completed.

How much could a cost segregation study save?

Studies typically uncover net present value tax benefits. On a $5 million property, that can represent $600,000-$650,000 of accelerated depreciation under current bonus depreciation rules.

How long does a cost segregation study take?

A typical study is completed within four to six weeks from the receipt of required documentation.

Meet your cost segregation advisor

Our cost segregation professionals combine engineering expertise, cost estimating knowledge, and tax authority proficiency to identify every legitimate accelerated depreciation opportunity and document it rigorously. Whether you are completing new construction, renovating an existing facility, or revisiting a prior acquisition, we will show you what is available.