Cost Segregation for Commercial & Short-Term Rental Owners
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NEW!   2026 UPDATE: 100% bonus depreciation has been permanently restored under the One Big Beautiful Bill Act of 2025. Cost segregation now stands at its highest value in a decade.   What it means for owners »   Ask us about the Form 3115 look-back for property you already own.  
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Serving commercial
owners throughout
Pennsylvania.

We Work With

Property owners,
CPAs & accountants,
and their advisors.

There's tax money trapped in your building. We already found it.

Welcome to Basis Property Group. Most owners, commercial and short-term rental alike, depreciate their property over thirty-nine years and leave six figures on the table. We map your building, estimate the depreciation that can be pulled into the current year, and our licensed engineering team delivers the study. You begin with a free, property-specific estimate, built from your building's own data.


Our Process

1We AnalyzeWe pull your building from county and engineering data and model the components inside your basis.
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2You ReviewYou receive a free, property-specific Preliminary Benefit Estimate. Approve only if it clears the bar.
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3Engineers DeliverOur licensed engineering team produces the IRS-aligned study under the Basis name.
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4You FileYou and your CPA file it and keep the cash flow this year.
  1. We analyze your property. We pull your building from county and engineering data and model the components inside your basis: the finishes, fixtures, site work, and equipment that should not be depreciating over thirty-nine years.
  2. You review your free estimate. You receive a property-specific Preliminary Benefit Estimate with your number on it. If the benefit clears the bar, you approve. If it does not, we tell you plainly and you owe nothing.
  3. Engineers deliver the study. Our licensed engineering team produces the IRS-aligned study under the Basis name. You and your accountant file it, and you keep the cash flow this year.

Why Now IMPORTANT

The One Big Beautiful Bill Act, signed July 2025, permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025. The scheduled phase-down has been eliminated, and cost segregation now stands at its highest value in a decade.

Owners who purchased or built within the preceding several years may also claim previously unrecognized depreciation through a Form 3115 change in accounting method – without amending prior returns. Read the full breakdown »


Our Methodology

  • Engineering-based component study. Building components are identified, quantified, and reclassified into their correct depreciation lives, as the IRS expects.
  • Aligned to current IRS guidance. Prepared to the Audit Techniques Guide framework and current bonus-depreciation rules under Section 168(k).
  • Form 3115 and 481(a) look-back. Property acquired in prior years yields a catch-up deduction without amending earlier returns.
  • Audit support included. The engineering methodology and asset classifications are documented and defended should a question arise.

See our full methodology »


Sample Preliminary Benefit Estimate

Illustrative sample. File No. BPG-0007. Yours is prepared from your building's own data.
Property Detail 
Address2140 Frankford Ave, Philadelphia PA
Property typeMixed-use retail
Building area / Year built11,400 sq ft / 1998
AcquiredMarch 2023
Purchase price$2,150,000
Building basis (land $430,000)$1,720,000
5-year property (fixtures, equipment)$214,300
7-year property (furnishings)$61,200
15-year property (site improvements)$206,100
ESTIMATED YEAR-ONE ACCELERATION$481,600

Approximately 28% of building basis, removed from the 39-year schedule and deductible in the current year under 100% bonus depreciation.

Where the $1,720,000 Building Basis Goes
5-year (fixtures, equipment)$214,300 · 12.5%
7-year (furnishings)$61,200 · 3.6%
15-year (site improvements)$206,100 · 12.0%
39-year (stays on schedule)$1,238,400 · 72.0%
Accelerated into year one$481,600 · 28%
The three warm slices, about 28% of the building basis, are reclassified out of the 39-year schedule and deductible now under 100% bonus depreciation. The gray slice keeps depreciating over 39 years. Illustrative, File No. BPG-0007.

Frequently Asked Questions

What is cost segregation?

It is an engineering-based study that separates a building into its components and assigns each its correct depreciation life. Rather than writing the entire building off over thirty-nine years, the parts that wear out sooner – finishes, fixtures, equipment, and site work – are depreciated over five, seven, or fifteen years, bringing deductions forward into the years you own the property.

Is this a loophole?

No. Component depreciation has been sanctioned since the Service's loss in Hospital Corporation of America v. Commissioner in 1997, and the IRS publishes an Audit Techniques Guide describing precisely how it is performed. Every study we deliver also carries our minimum ROI guarantee: your study identifies a large multiple of its fee in first-year accelerated deductions, or the study is free.

What about depreciation recapture?

A legitimate consideration. Accelerating depreciation can increase the amount recaptured upon sale. For most owners the time value of cash today, with the option to defer through a 1031 exchange, still prevails – though not for everyone. We say so plainly, and your accountant models your circumstances before you commit.

How long does it take, and what does it cost?

Your preliminary estimate is prepared first, and promptly. Once you approve, the engineered study is ordinarily delivered within days. The fee depends on the property; we provide it on a brief call, after you have seen what the study is likely to free up.

What does a study cost?

Every study is quoted per property, in writing, before you commit. There is no rate card, because the fee depends on the building. Every study is quoted per property. As an illustration of real studies we have run: a short-term rental study on a property carrying about $1.04 million of depreciable basis came in right around $2,000, and engineered commercial studies on buildings between $1.9 million and $3 million ran roughly $9,000 to $12,000. Those are examples of actual quoted work, not a rate card, and you see your estimated benefit before you get a quote. The fee is fixed before any work starts, and every study carries the minimum ROI guarantee: your study identifies a large multiple of its fee in first-year accelerated deductions, or you do not pay.

Basis Property Group is a cost segregation advisory and brokerage. It is not a certified public accounting firm or a law firm, and nothing on this website constitutes tax, legal, or accounting advice. Preliminary Benefit Estimates are modeled, illustrative figures provided to assist an owner in deciding whether to commission an engineered study. Actual depreciation and tax outcomes depend upon the engineered study and are determined by the owner and the owner's tax advisor.

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See your property's estimated first-year benefit in thirty seconds: the parcel, the building-vs-land basis split, and the projected deduction. No cost, no obligation.

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Estimates are preliminary and illustrative, not tax advice.

· OR ·

Not ready to book? Send us your property and we will e-mail your Preliminary Benefit Estimate.

Estimates are preliminary and illustrative, not tax advice. We typically respond within one business day. We do not sell or share your information.

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Property Types
Multifamily & Apartments Hotels & Hospitality Restaurants Medical & Dental Retail & Industrial
IRS ATG Aligned  ·  Methodology per IRS Pub 946 & Treas. Reg. §1.168  ·  Engineering-based component studies  ·  Form 3115 / 481(a) look-back  ·  Works directly with your CPA
Basis analyzes commercial property using a proprietary data engine covering more than 14,000 Pennsylvania commercial and industrial parcels.
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Content reviewed against IRS Publication 946, Treasury Regulation §1.168, and the IRS Cost Segregation Audit Techniques Guide. For educational purposes only; this site does not constitute tax advice. Consult your CPA before filing. Not affiliated with the IRS.