(800) 624-1076
INFO@TRI-MERIT.COM
Members Page
(800) 624-1076
INFO@TRI-MERIT.COM
Members Page

Cost Segregation Services

Improve Cash Flow with the Right Strategy

Cost segregation can significantly accelerate depreciation, but timing, classification, and strategy matter. Tri-Merit helps you determine when it makes sense and ensures every decision is fully validated and aligned.

Reliable Cost Segregation Analysis by Specialty Tax Professionals

Make your real estate investments work for you sooner rather than later.

125+Top 500 CPA firms
$1.2M+Single-study savings
100%Audit defense included
35+Years of experience
THE PROBLEM

Cost Segregation is Not Just a Study. It is a Strategic Decision.

Many providers approach cost segregation as a transactional service. The focus is often on speed or maximizing reclassification, not whether the strategy is right.

CPA firms and property owners are navigating:

  • Pressure to act quickly around acquisitions
  • Inconsistent quality across providers
  • Complexity in the ever-changing classification rules
  • Uncertainty around long-term tax impact

 

Cost segregation can improve near-term cash flow. The real question is whether it should be done, when it makes sense, and how the position will be supported.

Mg 0612 Scaled - Cost Segregation - Tri-Merit

What is Cost Segregation?

Cost segregation is an engineering-based analysis that reclassifies building components into shorter depreciation schedules, accelerating deductions and improving near-term cash flow.

How it Works

Instead of depreciating a property over 27.5 or 39 years, certain components can be reclassified into shorter lives:

  • 5-year property
  • 7-year property
  • 15-year property

What This Means

  • Increased deductions in earlier years
  • Improved cash flow
  • Better alignment with overall tax strategy
Feasibility Questionnaire
Bonus Depreciation & "Q" Property Timeline
Bonus Depreciation Timeline 1997–2027 100% 75% 50% 25% 0% 1997 2002 2007 2012 2017 2022 2027 OBBBA 100%
QIP
QLI
QRP
QRIP
Pre-OBBBA Bonus
OBBBA Bonus
OBBBA update: With the passage of the One Big Beautiful Bill Act, businesses can once again leverage 100% bonus depreciation — allowing for a full, immediate write-off of qualifying property placed in service after January 19, 2025. Cost segregation has become an even more powerful tool for maximizing tax savings and improving cash flow.

WHO QUALIFIES

Who Should Consider Cost Segregation?

Cost segregation is often most valuable for tax-paying property owners with recently acquired, constructed, or renovated properties, especially when they plan to hold the real estate long enough to benefit from accelerated depreciation.

Apartments
Assisted Living
Auto Dealerships
Banks
Data Centers
Grocery Stores
Hospitality
Manufacturing
Medical Buildings
Nursing Homes
Office Buildings
Restaurants
Retail
Self-Storage
Warehouse

If your property has been acquired, built, or improved in recent years, there is a strong chance cost segregation could apply.

Range of Increased Cash Flow in Years 1–5 per $1,000,000
Conservative to optimistic range by property type
Manufacturing
$90K–$140K
Data Center (Stand Alone)
$75K–$115K
Auto Dealership
$65K–$100K
Multi-Family (Garden Style)
$55K–$90K
Hotel (Full Service)
$55K–$85K
Grocery Store
$50K–$80K
Retail Strip Mall
$45K–$75K
Restaurant – Stand Alone
$45K–$70K
Nursing Home
$40K–$65K
Bank (Stand Alone)
$38K–$60K
Retail – Stand Alone
$36K–$58K
Medical Building (Hospital)
$34K–$55K
Hotel (Limited Service)
$32K–$52K
Office Building
$28K–$48K
Assisted Living
$24K–$42K
Medical Building (Clinic)
$22K–$38K
Self Storage
$18K–$32K
Warehouse
$14K–$28K
Conservative to Optimistic

Assumptions

Tax Rate: 21% Discount Rate: 6% Bonus Depreciation (2025): 100% Basis: Tax benefits per $1,000,000 of cost
How Tri-Merit works

A Structured, Strategic Approach

Feasibility analysis

We determine whether cost segregation makes sense based on property type, timing, and tax position.

Free

Engineering-based study

Our team performs a detailed analysis of building components and classifications.

Tax alignment and reporting

We coordinate with your CPA to ensure the study aligns with your broader tax strategy.

Documentation and delivery

You receive a fully documented, audit-ready report.

Ongoing support and audit defense

We stand behind our work if questions arise.

Included

How Costs are Identified, Allocated, and Assigned

Engineering-based methodology ensures precise component classification across all four stages

1
Balance, Estimate & Sort Costs
2
Identify Indirect Costs
3
Allocate Indirect Costs Pro Rata
4
Assign Appropriate MACRS Lives
Cost sources
General Contractor Costs
Owner Costs
Indirect cost categories
General Conditions
Architect & Engineer
Permits & Fees
Component breakdown
Concrete
Masonry
Metals
Sitework
Openings
Thermal / Moisture
Woods & Plastics
Finishes
HVAC / Plumbing
Electrical
MACRS asset lives
39 Year
Paving · Landscaping · Storm Drainage
15 Year
Site improvements
5 Year
Millwork · Carpet · Kitchen · Data · Electrical
Components reclassified into 5 and 15-year property generate the accelerated deductions that drive cash flow improvement.
Not sure if cost segregation is worth it? We will tell you upfront — no obligation.
See If Your Property Qualifies
Cost Segregation FAQs

An engineering-based study that accelerates depreciation by reclassifying building components into shorter-life asset categories (5, 7, or 15 years), reducing near-term tax liability.

Typically in the year of acquisition, construction, or renovation, but cost segregation can also be applied retroactively to prior-year properties without amending previous returns.

Savings vary based on property type and value, but often result in significant early-year tax benefits. A feasibility analysis will give you a clear estimate before any commitment.

It depends on the property value and tax situation. A feasibility analysis can determine this quickly — at no cost to you.

Tri-Merit provides audit-ready documentation and supports the work if reviewed. Our engineering-based methodology is built to meet IRS standards from day one.

Yes. We coordinate directly with your CPA to ensure proper reporting and alignment with your broader tax strategy. This is a collaborative process by design.

See More Frequently Asked Questions
Costseg - Cost Segregation - Tri-Merit

Download Tri-Merit's Cost Segregation Tax Strategy Guide

Name
Consent

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Back To Top