Cost Segregation

Accelerated depreciation, immediate savings.

RDIG's cost segregation service simplifies your property depreciation needs.

R&D cost segregation – office building at night symbolizing RDIG’s service that accelerates depreciation and delivers immediate tax savings

Reduced current tax liability for property owners.

Our cost segregation service classifies the assets within your real estate investments that have shorter depreciation lives, allowing accelerated deductions. A cost seg study often increases first-year depreciation by 20 to 40% of a building’s basis, potentially saving hundreds of thousands in taxes.

20 to 40%

building cost can often be reclassified for shorter depreciation

Our Process

RDIG's cost segregation studies identify the components of real estate eligible for 5-, 7-, or 15-year depreciation in accordance with IRS guidelines and engineering practices, delivering immediate tax deferral and improved cash flow.

Cost segregation process – illustration of a commercial building representing RDIG’s three-step service: free benefit estimate, engineer-led analysis, and audit-ready reporting
1

Free Benefit Estimate

We estimate your savings based on property cost, type, and in-service date.

2

Engineer-led Analysis

Our asset reclassification process is an in-depth expert-led analysis.

3

Audit-ready reporting

Ready with ongoing support in the event of audit or investigation.

Ideal for commercial and income-producing properties

Our cost segregation studies apply to new builds, renovations, and acquired properties, and are most effective for properties that have been placed in service within the last 15 years.

Commercial and income-producing properties – illustration of a professional with a report, symbolizing RDIG’s cost segregation studies for new builds, renovations, and acquired properties within the last 15 years

What is Cost Segregation?

A building can depreciate over a 39 year life, but its interior, furnishings, fixtures, sidewalks, fencing, landscaping, and other components have significantly shorter asset lives. Accelerating depreciation on these elements enhances cash flow by reducing current taxes due, restoring the time value of your real estate investment.

Cost segregation can be applied retroactively, even on properties placed in service years ago, without amending returns.

5-Year Property Examples:

Carpet, specialty lighting, dedicated electrical, millwork, cabinetry, movable partitions, data cabling, and kitchen equipment.

7-Year Property Examples

Certain office furniture, fixtures, and freestanding retail displays.

15-Year Property Examples

Site improvements such as asphalt paving, sidewalks, fencing, stormwater drainage, landscaping, and exterior lighting.

Contact Us

Our team will get back to you within 24 business hours

725 S. Figueroa Street, Suite 2250 Los Angeles, CA 90017

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