Cost segregation
Seneca Cost Segregation
Seneca Cost Segregation performs engineering-based cost segregation studies for real estate investors and owner-occupiers, working with the client's CPA. Studies follow the IRS Cost Segregation Audit Technique Guide, analyzing building components, documenting engineering methods, and producing defensible cost allocations.
The team is deployed across all 50 states and performs either remote (virtual) or on-site property tours, depending on the property, the timing needed, and client preference. The firm is veteran-owned and also provides tax strategy recommendations from certified tax advisors and complimentary tax assessments.
The site sets out what makes a good candidate: property purchased for at least $450,000 or with $500,000 in improvements, held for three or more years, and property bought, constructed, or renovated within the last 15 years. Eligible property types include office buildings, retail space, industrial sites, residential rentals, special-purpose buildings such as hotels and restaurants, and improvements made to leased commercial property. A free savings calculator and a free proposal are offered before engagement.
Studies are backed by Seneca AuditDefense: the firm responds to IRS questions about a study, and if an audit finds Seneca caused an issue resulting in more than a 5% adjustment, it refunds the cost of the study. The firm states an average first-year deduction of $171,243 and that a study turns 20-40% of property cost into immediate tax savings. Fees are not published. The office is at 1210 Jackson St SE, Suite 2, Albany, Oregon.
Best for
Real estate investors and business owners with property purchased for at least $450,000, or $500,000 of improvements, who plan to hold three or more years and want a study the preparer will defend in an IRS audit.
What they do
- Engineering-based cost segregation studies
- Virtual and on-site property inspections
- Free savings estimate and proposal
- Cost segregation savings calculator
- Retroactive look-back studies
- Leasehold and tenant improvement studies
- Complimentary tax assessments
- AuditDefense IRS audit response
Details
| Attribute | Value |
|---|---|
| Method | Engineering-based |
| Minimum basis | $500k |
| Audit defense included | Yes |
What stands out
- Team is deployed across all 50 states and performs either virtual or on-site property tours.
- AuditDefense refunds the cost of a study if an audit finds a Seneca-caused issue producing more than a 5% adjustment to depreciation.
- States an average first-year deduction of $171,243.
- Says its engineering team has over 12 years of experience in cost segregation.
- Veteran-owned, and started by founders who have invested in, built, and sold real estate.
Common questions
- Who can benefit from a cost segregation study?
- Owners of rental property, commercial real estate, owner-occupied real estate, new builds, or real estate with renovations exceeding $450,000 can benefit, as can real estate professionals who have purchased, constructed, or renovated property in the last 15 years.
- What types of property qualify for cost segregation?
- Almost any type of real estate, including office buildings, retail spaces, industrial sites, residential rentals, and special-purpose buildings such as hotels or restaurants. Tenants can also benefit from studies on improvements made to leased commercial property.
- How does cost segregation differ from straight-line depreciation?
- Straight-line depreciation spreads cost evenly over 27.5 years for residential property or 39 years for commercial property. Cost segregation reclassifies components into 5, 7, or 15-year lives, moving deductions into the early years of ownership and increasing cash flow.