No one could argue that real estate is a cheap investment to get into. It’s an investment with a good chance for long term ROI, of course. But it’s not something to sink money into without knowing the ins and outs of the property market first.
After all, the large up front budget that’s required aside, you’ve got a lot of tax concerns to keep in mind too. Property taxes make up nearly a third of all tax collection in the US, and rental income is often subject to heavy capital gains tax brackets.
But there are ways to save money on your taxes each year. And in the real estate market, annual depreciation deductions can lower your tax bill by tens of thousands.
The best way to make sure you’re getting the maximum depreciation deductions on your taxable income? Through a cost segregation study performed by the experts at R.E. Cost Seg.
Here’s what you need to know about using their service in 2026.
Cost Segregation: What it is and How it Works
Cost segregation outlines all of your real estate assets, splits them up, and breaks them down into different categories. This is done via a cost segregation study.
This then means you can see which assets are both able to be depreciated, as well as how quickly they can be depreciated – usually over a period of either 5 or 15 years.
Assets can include any buildings, as well as any and all depreciable assets inside. This is anything that is likely to undergo wear and tear and lose value, including most interior fixtures and exterior features.
Cost segregation studies are performed by expert teams of tax advisors and property engineers, to make sure all assets are split correctly and have an accurate value estimation.
Once a cost segregation study is completed, you can look into using accelerated depreciation to save money on your real estate tax bill.
Accelerated Depreciation: A Quick 101
In the US, standard depreciation is a deduction calculated over the course of 27.5 years (for residential properties).
Accelerated depreciation, on the other hand, allows you to use a much larger amount of your property’s value as a deduction within the first 5 to 15 years.
For real estate investors, this means you retain more of your money in the here and now, which can make it easier to capitalize on your investment.
What R.E. Cost Seg Can Do For You
R.E. Cost Seg are cost segregation and analysis experts.
The team has been working to help real estate investors save money on their real estate income through tax bill deductions for a long time now.
They provide free proposals for a variety of different properties, including short term rentals, office buildings, apartment complexes, warehouse facilities, and hotels.
And seeing as they’ve worked on over 15,000 properties and saved over $1.5 billion in tax, the team clearly knows what they’re doing.
How it Works
According to their website, R.E. Cost Seg’s service has a 4 step process to it:
- Get in touch with your details
- Send through any required supporting documentation
- Book a virtual visit with a team member
- Get your report
Real estate taxes are complex to deal with, even when you have an accountant or tax advisor on your side.
So when the process is as straightforward and easy as this, it’s not hard to see why they have so many glowing reviews.
The Best Parts of R.E. Cost Seg’s Services
Cost segregation expertise
It’s the one service they provide and they aim to always provide it well! And we’re happy to say that from what we’ve found, they always do.
Their team is experienced in both real estate costs and engineering, and it’s this expertise that leads to such a beneficial cost segregation report on the other side.
Seamless integration with your CPA
If you already have an accountant looking over your real estate portfolio, R.E. Cost Seg makes it easy for them to work on the actionable insights the team delivers. Plus, you can be as much or as little involved as you like!
Long term support
Their cost segregation expertise doesn’t end the moment your report is delivered.
The team is always on hand for advice, and are willing to give you the time you need for any questions, concerns, or need for clarification.
And in the case of an audit, even years later, they’ll be available to help provide records, judgements, and expertise.
Commitment to maximizing your recoverable depreciation
R.E. Cost Seg state that they are keen to make sure their clients get ‘maximum value’ out of any tax savings they suggest.
On top of that, with recent changes to the bonus depreciation amount in the US, they also promise to update clients with new reports if these are applicable.
Tax Savings and Real Estate: Are R.E. Cost Seg the Firm For You?
It’s definitely a choice to make for yourself, no matter the kind of real estate holdings you have or the deductions you usually are able to claim back.
After all, accelerated depreciation isn’t the right choice for everyone – and it may not even be applicable to your property type, age, or features.
But if you’re interested in getting a cost segregation study performed, they have a stellar service and a great team to perform it.
They work alongside your accountant to make sure there’s minimal disruption, as well as a fast turnaround for those strict tax year deadlines.
And if you need support at any point down the line, the team is there for you too. If an audit comes around and you’re concerned about the way you’ve used depreciation, R.E. Cost Seg are more than happy to reaffirm any decisions they made in the first place.
All in all, we can wholeheartedly recommend R.E. Cost Seg to real estate investors looking to save as much tax as possible.
