Who qualifies for a cost segregation study?

Any building in excess of $300,000 in value that has been purchased, constructed or substantially improved since 1987. Savings can begin with the first tax return through increased depreciation deductions on the newly segregated costs, and where the purchase or construction happened in an earlier year, catch-up depreciation is allowed.

What is cost segregation?

Cost segregation allocates building costs between real estate and personal property based on case law and IRS guidance. An engineering-based study is the only method the IRS recognises for identifying the personal property and land improvements contained in a commercial structure, and it lets the owner accelerate depreciation deductions, defer taxes and increase cash flow.

Cost segregation

Duffy+Duffy Cost Segregation

Duffy+Duffy Cost Segregation Experts prepares engineering-based cost segregation studies for commercial building owners. A study allocates building cost between real property and the personal property and land improvements inside it, so depreciation can be accelerated and taxes deferred. Studies are performed by CPAs and construction engineers and estimators, are based on case law and IRS guidance, and are built to meet the IRS Cost Segregation Audit Guidelines.

The firm conducts studies in all 50 states and starts every engagement with a free analysis: a no-cost estimate of potential tax deferrals plus a fee quote. Any building worth more than $300,000 that has been purchased, constructed or substantially improved since 1987 can qualify, and where the work was done in an earlier year, catch-up depreciation is allowed for deductions not taken. Related work covers the IRS repair regulations, construction tax planning, EPAct Section 179D, studies on LEED certified and high-efficiency buildings, and assigning costs to building components for IFRS component depreciation.

Duffy+Duffy is an approved CPE provider in Ohio, Michigan and Pennsylvania and runs seminars for accountants. It was named a Top-5 Cost Segregation Firm in the United States in 2023 by Realty Street. Offices are in Westlake, Ohio; Columbus, Ohio; and Novi, Michigan.

Fees are quoted case by case after the free analysis rather than published. Ask for the deferral estimate and the fee quote in writing on 440-892-3339 before engaging.

Best for

Commercial building owners with a property worth more than $300,000 that was bought, built or substantially improved since 1987, including owners who missed the deduction in earlier years and can still take catch-up depreciation.

What they do

Engineering-based cost segregation studies
Catch-up depreciation for prior-year acquisitions
Construction tax planning
IRS repair regulations analysis
EPAct Section 179D studies
Component cost allocation for IFRS
Cost segregation on LEED certified projects
Free deferral analysis and fee quote

Details

Attribute	Value
Other offices	Columbus, OH, Novi, MI
Licenses	Approved CPE provider in Ohio, Michigan and Pennsylvania
Memberships	Certified Cost Segregation Professional (CCSP) on staff
How they charge	Free analysis giving a no-cost estimate of potential tax deferrals and a fee quote; fees are quoted per engagement and not published.
Method	Engineering-based
ASCSP certified	Yes

What stands out

Conducts cost segregation studies in all 50 states from offices in Westlake and Columbus, Ohio and Novi, Michigan.
Named a Top-5 Cost Segregation Firm in the United States in 2023 by Realty Street.
Approved CPE provider in Ohio, Michigan and Pennsylvania.
Buildings over $300,000 purchased, constructed or substantially improved since 1987 can qualify.

Common questions

Who qualifies for a cost segregation study?: Any building in excess of $300,000 in value that has been purchased, constructed or substantially improved since 1987. Savings can begin with the first tax return through increased depreciation deductions on the newly segregated costs, and where the purchase or construction happened in an earlier year, catch-up depreciation is allowed.
What is cost segregation?: Cost segregation allocates building costs between real estate and personal property based on case law and IRS guidance. An engineering-based study is the only method the IRS recognises for identifying the personal property and land improvements contained in a commercial structure, and it lets the owner accelerate depreciation deductions, defer taxes and increase cash flow.