Original closing statement and purchase agreement
OWNED IT FOR A FEW YEARS?
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
You may not be too late.
An owner who placed property in service in a prior year may still be able to complete a cost segregation study. Depending on the facts, the CPA may use an accounting-method change to recognize missed depreciation without amending every prior return.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
The study still analyzes the property as of its acquisition or placed-in-service date. Prior depreciation, later improvements, dispositions and current ownership must be reconciled carefully. The technical report supports the asset classifications; the CPA prepares and files any required tax forms.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Information needed for a look-back screen
Placed-in-service date and prior depreciation schedule
Land allocation and appraisal, if available
Renovations and capital improvements by year
Current ownership and entity information
Expected hold period and CPA contact
SHOW ME THE NUMBERS
Illustrative look-back example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $4,000,000
- Estimated depreciable basis
- $3,200,000
- Potential faster basis
- $480,000 to $960,000
- Potential upfront federal effect
- Depends on catch-up calculation
- Study or comparison benchmark
- $5,000 to $15,000+
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
No prior cost segregation study
✓
Property is still owned and depreciating
✓
Meaningful remaining building basis
✓
CPA can evaluate the method-change treatment
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Do I have to amend every old return?+
Not necessarily. A qualifying change may be implemented through the applicable accounting-method procedure, but the owner’s CPA must determine and file the correct treatment.
Is a property owned more than three years still worth screening?+
Possibly. The key questions are remaining basis, prior depreciation, current tax usability, study cost and expected hold period—not an automatic three-year cutoff.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 17, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN