Cost Segregation for Commercial & Short-Term Rental Owners
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NEW!   ROOFER PARTNER PROGRAM: Show commercial & short-term-rental owners the first-year deduction in their building, and stop losing bids on price.   Get the free training »   No tax knowledge required. Licensed engineers do the study.  

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Serving roofers and
owners throughout
Pennsylvania.

We Work With

Commercial roofers,
short-term-rental market
roofers, and the owners
they serve.

Stop quoting $60,000 projects. Start showing owners the deduction in their building.

Is there a first-year deduction sitting in the building you bid? A cost segregation study looks for it. That deduction is what the owner weighs against the price of the project. Show the owner that number and the conversation stops being about price. You become the roofer who found them the deduction.


The Number Next to Your Bid

The roof is never the deduction. A cost segregation study on the building is, and the first-year deduction it finds is the number the owner weighs against the price of the roof. Here is how it looks across the three kinds of property you bid.

 Short-Term
Rental
Long-Term
Rental
Commercial
Building basis$214,000$1,010,000$2,000,000
Year-one deduction a study would look for≈$60,300≈$160,300≈$378,000
Study fee (value → engineered)$1,895$2,695$6,095–$12,095
New roof (your bid)$15,000$40,000$60,000

STR and LTR first-year deductions come from actual cost segregation runs. Study fees run from a value study (from $1,295) to a fully engineered study (up to $12,095 on large commercial); residential prices are firm, commercial figures firm up as we finalize the schedule. Roof costs are examples. Whether a deduction can be used the same year turns on the passive loss rules: passive income, real-estate-professional status, or, for a short-term rental, average stay and material participation. The owner's CPA applies the tests.

$378,000
Year-1 Deduction (Commercial)

How the deduction is built: a study reclassifies part of the building into fast depreciation, and 100% bonus depreciation deducts it in year one.


Show the Owner Their Number in 30 Seconds

Enter the property and get a preliminary year-one estimate on the spot. This is the number the owner weighs against the price of the project.

Preliminary and illustrative, from the Basis estimate engine. The owner's final number comes from the engineered study and their CPA.


How the Program Works

1 You Spot the RoofCommercial, rental, or short-term-rental. The rule: the building is held for income.
2 You Show the NumberPull a free estimate and show the owner their first-year deduction on the spot.
3 You Close the BidThe owner weighs the deduction against the price. Price stops being the fight.
4 We Deliver the StudyOur licensed engineers produce the IRS-aligned study. You never touch the tax side.

You stay in your lane, which is roofing. The free training gives you the plain-English pitch, and the toolkit gives you the owner one-pager, the estimate request, and the leave-behind FAQ.


The Deal, Start to Finish

Here is how a job plays out, and when the money changes hands. You get paid for the roof the same as always. The difference is the owner's CPA takes the first-year deduction on the return it files.

  1. 1
    Day one
    You close the client
    You show the owner their number and close the roof plus a cost segregation study on the building.
  2. 2
    Week 1
    We set up the study
    Basis and the licensed engineers open the study and pull the building's data. You do nothing here.
    Owner pays the study fee: $3,000 to $15,000
  3. 3
    Weeks 1–4
    You start the work
    You install the roof and invoice the job, the same as any other.
    Owner pays you for the roof: $60,000
  4. 4
    Weeks 3–5
    The study is delivered
    Engineers hand the finished, IRS-aligned study to the owner's CPA.
  5. 5
    At tax filing
    Their CPA files it
    The study goes on the return the CPA files. The CPA decides the year the deduction is claimed.
    First-year deduction in this example: $378,000

Following the commercial example from the table above. Timing is illustrative; turnaround is typically 3–5 weeks, and the deduction is taken on the return the CPA files. STR and LTR deals run the same way at the smaller numbers shown in the table.


Why the Deduction Is Biggest Now 2026 UPDATE

A building's deductions normally dribble out over thirty-nine years, so thin the owner never feels them. Cost segregation and current bonus rules pull the fast components into Year 1. That is the first-year deduction the owner weighs against the project.

The owner's deduction, year by year (illustrative)
Year 1
Year 2
Year 3
Year 4
Year 5
Old way: 39-year dripFront-loaded into Year 1
100% Bonus Depreciation is Back
The One Big Beautiful Bill Act (July 2025) permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025. That 100% bonus applies to the 5, 7, and 15-year components a study identifies.
Already own the building? A Form 3115 look-back takes depreciation missed in prior years as a 481(a) adjustment in the current year, with no amended returns. That adds a catch-up deduction for the owner to weigh before they sign.

Where the Deduction Sits

A study carves the building out of the slow 39-year bucket and into faster ones. The roof project is the moment to look.

Fixtures & Equipment
5-year propertyLighting, wiring for equipment, specialty finishes.
5 yr
Fast
Interior Furnishings
7-year propertyCabinetry, certain fixed furnishings.
7 yr
Fast
Site Improvements
15-year propertyPaving, curbs, landscaping, exterior lighting.
15 yr
Fast
Building Shell
39-year propertyStructure and long-life components.
39 yr
Slow

A study moves finishes, fixtures, and site work into the fast lanes. The IRS lost Hospital Corporation of America in 1997 and publishes an Audit Techniques Guide for these studies.


Which Property Types Depreciate

  • Commercial & industrial: retail, office, warehouse, restaurants, medical.
  • Rental & multifamily: apartments, leased buildings held for income.
  • Short-term rentals: Airbnb and VRBO properties in vacation markets.
  • A primary residence: not depreciable.

This is a program for commercial roofers and roofers who work rental and vacation markets, not residential retail.


Two Studies, Full Protection

We offer a value study and a fully engineered study. So you bring the owner an option at any budget and never lose the job over the fee. You set the price; we meet the owner wherever they want to be.

Lower Price
The Value Study
Our lower-priced study, with audit support behind it.
Most Thorough
The Engineered Study
Fully engineered, with the deepest engineering paper trail and the same audit support behind it. The most thorough version.
Audit Support
Included
Licensed
Engineers
IRS-ATG
Aligned

The guarantees on the engineered study.


Roofer FAQ

Is the roof itself the tax deduction?

No. The deduction comes from a cost segregation study on the whole building, not the roof. The study looks for a first-year deduction, which the owner weighs against the cost of the roof.

Do I need to understand the tax side?

No. You spot the roof and make the introduction. Licensed engineers produce the study and work with the owner's accountant. The free training gives you the plain-English pitch. You never have to answer a tax question.

What does it cost me or my customer?

Nothing to join the program or run the preliminary number. The owner pays for a study only if the estimated deduction clears the bar, and they see that number first. Basis offers options from a value study to a fully engineered one, so you can meet any owner at their budget.

What is in it for me?

You stop competing on price and you close more bids. You show up with something no other roofer brings. Ask us about partner referral terms when you complete the training.

Is this legitimate?

Component depreciation traces to 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.

Basis Property Group provides cost segregation studies. It is not a certified public accounting firm or a law firm, and nothing on this page constitutes tax, legal, or accounting advice. Figures shown are modeled, illustrative examples provided to help a roofer and an owner decide 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.

Get the Free Roofer Training

Enter your details and we will e-mail you the training and the done-for-you pitch toolkit: the owner one-pager, the estimate request, and the leave-behind FAQ. It is free. Most roofers finish it in an afternoon and use it on their next bid.

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» Questions first? [email protected]

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 the owner's CPA
Basis works with commercial and short-term rental owners in all 50 states, with guides covering 44 vacation rental markets. Estimates run off the county's own assessment records, including a proprietary data engine covering more than 14,000 Pennsylvania commercial and industrial parcels.