- $410K
- Avg. first-year deduction, 70+ room property
- 20–35%
- Of basis reclassified to short life
- 5–10x
- Typical return on study fee
The overview
Hotels are one of the highest-value properties for cost segregation. FF&E, decorative lighting, millwork, pool and site improvements, and specialty electrical can often be depreciated over 5, 7, or 15 years instead of 39.
Combined with bonus depreciation, a study on a recently acquired or renovated property can convert a large chunk of your basis into first-year deductions—cash you can redeploy into your next deal or a brand-mandated PIP.
We coordinate an engineering-based study, apply it correctly on your return, and model the after-tax impact before you commit—so you know the ROI up front.
What's included
- Engineering-based cost segregation study
- Bonus-depreciation and Section 179 optimization
- Look-back studies for properties placed in service in prior years
- Partial asset disposition analysis during renovations
- After-tax cash-flow modeling before you engage
- Audit-ready documentation and IRS support
Common questions
I bought my hotel a few years ago—did I miss the window?
No. A look-back study lets you claim the missed depreciation on your current return via an automatic accounting-method change (Form 3115), without amending prior years.
Does a study make sense for a smaller property?
Often yes. We run a free preliminary estimate first. If the projected benefit doesn't clearly exceed the cost, we'll tell you it's not worth it.
Explore other services
Ready to talk cost segregation?
Book a free, no-pressure consultation. We'll review your properties, flag the biggest tax and cash-flow opportunities, and send a clear proposal.