What is Cost Segregation, and why it matters

Cost Segregation is an IRS-recognized tax strategy under IRC §168 that allows property owners to reclassify qualifying building components into shorter recovery periods of 5, 7, or 15 years, instead of depreciating an entire building over 27.5 or 39 years. This results in accelerated depreciation, increased near-term deductions, and reduced current tax exposure — without changing how your business operates.

Rather than treating a property as a single depreciable asset, a properly executed Cost Segregation study identifies and documents components such as specialty electrical systems, plumbing, interior finishes, and exterior improvements that qualify for faster recovery under MACRS.

At Ayming USA, our team of engineers, tax professionals, and Cost Segregation specialists work together to deliver defensible, engineering-based studies aligned with IRS guidance to ensure all depreciation opportunities are identified and applied correctly.

Key insights

• How Cost Segregation works under IRS regulations

• Why depreciation timing is a powerful cash-flow lever

• Which building components typically qualify

• When a study delivers the greatest financial impact

• How bonus depreciation and recent legislation affect planning

• Common compliance risks and how to avoid them

What you’ll learn

• What Cost Segregation is — and what it isn’t
• How engineering-based studies are conducted
• How assets are classified into IRS categories
• Who qualifies and when it makes financial sense
• How catch-up depreciation and partial asset disposition work
• How accelerated depreciation improves ROI and capital efficiency

Who should read this guide?

This guide is designed for:

• Commercial and residential property owners

• Real estate investors and developers

• CPAs, tax advisors, and wealth managers

• Businesses with income-producing properties

• Owners who have purchased, constructed, or renovated real estate

If you own depreciable property and pay federal income tax, there is a strong likelihood you qualify.

By downloading this guide, you’ll gain a clear and actionable understanding of cost segregation — including when it makes sense, how it’s done, and how much you could save.