Cost Segregation

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705 Granada Blvd South Jacksonville, FL 32207

Email

jim@tilbrookcpa.com
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(904) 477-3369

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    Tax CPA and engineering specialist reviewing commercial building blueprints for a cost segregation study
    01
    Cost Segregation Study in Jacksonville

    Cost segregation is a tax planning strategy that speeds up depreciation deductions on commercial and rental property. Normally, a commercial building is depreciated over 39 years and a residential rental over 27.5 years. A detailed engineering-based study identifies parts of the property that qualify for much shorter lives, so you deduct more in the early years. The result is lower taxes now and more cash to reinvest in your business. If you have bought, built, expanded, or renovated property, Tilbrook CPA can help. We serve Jacksonville, Orange Park, Ponte Vedra, St. Augustine, and Fernandina Beach. Call (904) 477-3369 to learn more.

    02
    When to Order a Depreciation Study

    The best time to order a study is in the year you buy, build, or renovate a property. If you have owned the building for several years, you are not too late. In many cases, we can claim the depreciation you missed in a single year by filing a change in accounting method (IRS Form 3115), without amending prior returns. We will estimate your potential benefit before you commit to a study. Planning a purchase or renovation now? Bring us in early, and we can help you gather the cost records that make the study faster and more accurate.

    03
    Our Four-Step Cost Segregation Process

    First, a qualified engineer or specialist inspects the building and reviews plans, invoices, and closing documents. Second, we estimate the cost of each component, from flooring and lighting to parking lots and landscaping. Third, we sort each item into its correct IRS class: typically 5-year, 7-year, or 15-year property, with the structure itself remaining at 27.5 or 39 years. Finally, we deliver a detailed report and update your depreciation schedules so the savings flow directly into your tax return.

    Financial chart showing accelerated depreciation schedules for 5, 15, and 39-year property assets
    04
    Accelerated Depreciation for Real Estate Investors

    Many items inside a building wear out far sooner than the structure itself. Cabinets, carpet, specialty electrical, and site improvements can often be depreciated over 5 to 15 years instead of 39. These shorter-life assets may also qualify for bonus depreciation, which can create large first-year deductions. Our real estate investor tax strategy looks at your full portfolio, including future sales, depreciation recapture, and 1031 exchange planning, so today's savings fit your long-term goals. We also coordinate with your lender, property manager, and other advisors so every number matches.

    05
    Property Types That Qualify for Accelerated Depreciation

    As a real estate tax planning CPA firm in Jacksonville, we help owners of many property types, including:

    • Hotels and motels
    • Apartment buildings and short-term rentals
    • Office and retail buildings
    • Restaurants
    • Warehouses and industrial facilities
    • Medical offices, nursing homes, and assisted living facilities
    Real estate investor consulting with CPA on bonus depreciation tax savings for commercial properties
    06
    Components That Often Qualify for Faster Write-Offs

    A study often finds value in items owners overlook. Common examples include specialty flooring, cabinetry and millwork, decorative lighting, dedicated electrical and plumbing for equipment, parking lots and sidewalks, fencing, landscaping, and site utilities. When parts of a building are replaced during a renovation, you may also be able to write off the remaining value of the old components.

    Looking for Cost Segregation Help? Contact Us to Get Started

    See how much you could save with a study from Tilbrook CPA. Call (904) 477-3369 or email jim@tilbrookcpa.com to schedule a free consultation and benefit estimate.

    Don't Wait Until Tax Season!

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    Tax specialist analyzing state and local corporate tax allocation metrics on digital dashboard
    Business executive and CPA evaluating corporate tax deduction schedules and credit calculations
    Is a cost segregation study worth it for my property?

    It is often worth considering for properties with a depreciable cost of several hundred thousand dollars or more. We provide a quick estimate of your benefit before you decide.

    Yes. A look-back study lets you claim missed depreciation in the current year through an accounting method change, usually without amending past returns.

    Yes. Apartment buildings, single-family rentals, and short-term rentals can all benefit, as long as the property is used to produce income.

    Accelerated depreciation may be partly recaptured when you sell. We plan for that in advance, and strategies such as a 1031 exchange may help defer the tax.

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