Original placed-in-service date and basis
LOOK-BACK STUDY IMPLEMENTATION
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
The study supports the numbers. Your CPA handles Form 3115.
A property owner who missed cost segregation in an earlier year may be able to change the depreciation method through Form 3115 and a Section 481(a) adjustment rather than amending every prior return. The cost segregation report supplies the technical asset classifications and corrected schedules.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
Form 3115 is a tax filing, not part of the engineering study itself unless specifically included. The CPA evaluates eligibility, computes prior depreciation, prepares the method-change filing and confirms the correct designated change procedure for the filing year.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
What the CPA and study team coordinate
Prior federal and state depreciation
Corrected asset classifications and lives
Section 481(a) catch-up calculation
Current automatic-change procedures
Separate California adjustments
SHOW ME THE NUMBERS
Illustrative look-back file
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
- CPA calculates catch-up
- 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.
✓
Property is still owned and depreciating
✓
No adequate prior study exists
✓
Prior schedules are available
✓
CPA agrees a method change is appropriate
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.
Does Cali Cost Seg prepare the tax return?+
No. We provide the technical study and schedules. The owner’s CPA prepares Form 3115, computes the filing adjustment and determines the return position.
Can I amend old returns instead?+
The correct path depends on the facts and procedural rules. A CPA must determine whether an accounting-method change, amended return or another treatment applies.
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