Specialty Tax Group
Blogs & Articles

By Automation Links
•
November 25, 2025
Cost Segregation Cost segregation has always been a powerful tax strategy for real estate investors, but the next three years are especially important. Recent tax law changes now allow many investors to take advantage of 100 percent bonus depreciation again. This creates a significant opportunity for anyone who owns residential rentals, commercial buildings, or owner-occupied real estate. If you time your cost segregation studies correctly, you can accelerate years of depreciation into a single tax year, increase cash flow, reduce tax liability, and free up capital to reinvest into new properties. Below is a detailed breakdown of how to unlock bonus depreciation in 2024, 2025, and 2026 with a structured cost segregation strategy. To explore a study for your property, visit our Cost Segregation Services page.

July 14, 2025
Changing your accounting method can unlock massive tax savings, but only if you file Form 3115 correctly. This IRS form lets you switch from your current depreciation method to reflect the results of a later cost segregation, potentially saving you tens of thousands—or even hundreds of thousands—of dollars on your taxes. Here's exactly how to do it right. What Exactly Is Form 3115 and Why Does It Matter? Form 3115 is the IRS's "Application for Change in Accounting Method." Think of it as your official request to change how you depreciate business assets, especially when you want to implement cost segregation studies on your previously acquired properties. Here's why this matters: When you originally filed your taxes, you probably depreciated your entire building over 27.5 years (residential) or 39 years (commercial). But with cost segregation, you can reclassify portions of that building into 5, 7, and 15-year property categories, dramatically accelerating your depreciation. The numbers speak for themselves. A cost segregation study on a $13.5 million retail shopping center purchased in 2021 generated $1,168,876 in tax savings in the first year alone. That's the power of properly executed accounting method changes.
Specialty Tax Group Newsletter Sign Up
Complete the form below to sign up for our monthly newsletter.









