Robust, Effective Cost Segregation Studies
We prepare Cost Segregation Studies for your residential investment properties, opening the doors to tremendous savings on taxes.
What Is a Cost Segregation Study?
A Cost Segregation Study is a detailed analysis that breaks down and categorizes the components of your property. By reclassifying certain building components into shorter-lived asset classes, you can accelerate depreciation and capture tax savings sooner. This allows you to take much larger depreciation deductions in the first few years of ownership, significantly reducing your current tax burden and increasing your cash flow.
What I Do
Hi, my name is Nolan Borzoni, founder of COST APEX INC. I'm here to help investors maximize their tax savings by providing Cost Segregation Studies for residential investment properties. My process is engineered to be thorough, compliant, and focused on maximizing your tax savings.
From discovery through final report, you'll get a clear, defensible study and support throughout the process.
Why Get a Study in 2025?
In 2025, 100% bonus depreciation is back, and that makes a cost segregation study more valuable than ever. When we identify and reclassify qualifying components of your property into 5, 7, or 15-year asset lives, you can immediately deduct their entire cost in the year the study is completed. For many residential rental properties, this can mean writing off 20–30% of the property's value in year one alone. That translates into massive deductions, directly reducing your current tax bill and boosting cash flow. Those funds can be used to improve your property, cover expenses, or reinvest into new acquisitions, compounding your returns faster. Your tax advisor can model the interaction with passive-loss limitations and recapture rules to confirm your net benefit, but in 2025, the timing has never been better to leverage a cost segregation study.
Your tax advisor can model the interaction with passive‑loss limitations and recapture rules to confirm net benefit.
Our Process
Discovery
We'll discuss your property's details, your goals, and any constraints to make sure the study fits your timeline and return expectations.
Data Collection
We gather all necessary documentation and conduct a comprehensive property walkthrough, identifying and cataloging every depreciable component to ensure nothing is overlooked.
Engineering Analysis
Our team performs a detailed engineering analysis of your property, creating a comprehensive cost segregation study that maximizes your tax benefits while maintaining full compliance.
Final Report & Support
You receive a complete audit-ready report with detailed schedules and supporting documentation. We provide full backing and support for your study throughout the entire process.
Methodology and Standards
Our cost segregation methodology follows IRS guidelines and industry best practices, utilizing an engineering analysis and comprehensive property documentation to ensure maximum defensibility. Each study is backed by thorough on-site inspections, photographic evidence, and precise cost calculations that meet or exceed IRS Audit Technique Guide standards, giving you confidence that your accelerated depreciation deductions will withstand scrutiny.
2025, The Year of Bonus Depreciation
The recently enacted "One Big Beautiful Bill" has restored 100% bonus depreciation for qualifying assets placed in service after January 19, 2025 Tax FoundationTax Foundation. This equates to tremendous savings potential in year 1, savings you can deploy towards other investments.
Let's Get Started
Ready to maximize your tax savings? Let's discuss how a cost segregation study can benefit your investment properties.
I'm here to help you understand the potential tax savings for your specific properties.
Frequently Asked Questions
What types of income can these deductions offset?
By default, real‑estate depreciation offsets passive rental income (IRC §469). If you materially participate and qualify as a Real Estate Professional, you may apply the losses against non‑passive income. See IRS Publication 925 for full rules.
Will I have to pay recapture when I sell?
Depreciation taken on 5‑ and 15‑year assets is subject to ordinary‑income recapture under IRC §1245. However, the time‑value benefit earned during ownership often outweighs the future tax. Your CPA can model the sale scenario.
What types of income can these deductions offset?
By default, real-estate depreciation offsets passive rental income (IRC §469). If you materially participate and qualify as a Real Estate Professional, you may apply the losses against non-passive income. See IRS Publication 925 for full rules.
What types of income can these deductions offset?
By default, real-estate depreciation offsets passive rental income (IRC §469). If you materially participate and qualify as a Real Estate Professional, you may apply the losses against non-passive income. See IRS Publication 925 for full rules.
Will I have to pay recapture when I sell?
Depreciation taken on 5- and 15-year assets is subject to ordinary-income recapture under IRC §1245. However, the time-value benefit earned during ownership often outweighs the future tax. Your CPA can model the sale scenario.
Do Cost Segregation Studies get audited?
Our studies strictly follow IRS guidelines and engineering-based methodologies outlined in the IRS Cost Segregation Audit Techniques Guide. While the chance of an audit is low, if it does happen, we’ll drop everything we’re doing to defend our work and assist your tax professional.
How fast is the turnaround?
Once all required documents are provided and we can complete a site visit, most studies are finished within about one week.
What documents do I need to provide?
Typical documents include your property’s closing statement, appraisal (if available), site plan, floor plan, construction or renovation cost breakdowns, and recent tax records. The more detail we have, the faster and more precise your study will be.
Will this reduce my property taxes?
No. Cost segregation affects your federal and state income taxes, not your local property tax assessment. Your assessed value for property tax purposes will remain the same.
Can I do this on a property I’ve owned for years?
Yes. You can perform a “look-back” study on properties placed in service in prior years and catch up on missed depreciation through a one-time adjustment (Form 3115) without amending past tax returns.
How much can I expect to save?
While results vary, residential rental properties often see 15–30% of their value reclassified into shorter-lived asset categories, generating first-year tax savings that can range from $10,000 to $50,000+ depending on your property value and tax bracket.
Is this legal?
Absolutely. Cost segregation is a tax strategy explicitly recognized by the IRS. When done using proper engineering-based analysis — the way we do it — it’s completely legal and widely used by real estate investors.
Do you offer support to my CPA?
Yes. We work directly with your CPA or tax professional to ensure the results are integrated seamlessly into your tax filings. If they have questions about our methodology, we’ll provide clear documentation and explanations.
Do you need to visit my property in person?
Yes. A site visit allows us to document materials, measurements, and building components accurately — ensuring the study can stand up to IRS scrutiny.