​Strategic Advisory: 747-244-6728 | Tax & Insurance: 714-369-7357
COST SEGREGATION
Cost segregation, done with the strategy attached.
Most CPAs refer cost segregation studies and then disconnect from the work. We stay involved — from qualification analysis through §481(a) catch-up, §469 passive activity work, and the multi-year depreciation tracking that follows. Engineering partners perform the study. We handle everything else.
Where most cost seg engagements lose value
A cost segregation study reclassifies parts of a building into shorter depreciation lives. Done correctly, it accelerates real money. But the study is only part of the work.
Before the engineering team starts, someone has to determine whether you actually qualify to use the accelerated deductions under §469. After the study, someone has to file the §481(a) catch-up, integrate the new schedules into federal and state returns, and track parallel depreciation engines where state law diverges from federal. California, New York, and Hawaii are not minor footnotes — they are different depreciation systems.
This is the work that separates a useful engagement from an expensive paper exercise.
How we work
A typical Vietax cost segregation engagement has three phases. We are involved in all three.
Qualification first. Before you commit to an engineering study, we analyze your passive activity position under §469, your real estate professional status, your short-term rental material participation, and your at-risk basis. If the study will not provide a usable benefit to you in the foreseeable future, we will inform you before the engineering fee is spent.
Study coordination. If the qualification supports moving forward, our specialist engineering partners conduct the cost segregation study. We handle scope, document collection, and integration with your tax planning.
Implementation and tracking. After delivery, we file Form 3115 for the §481(a) catch-up, integrate the new schedules into your returns, build parallel depreciation engines where required by states, and track the position through future sales, 1031 exchanges, and disposition events.
Who this is for
Cost segregation is a real strategy for some real estate owners and a waste of money for others. The owners who benefit most from working with us are usually:
-
Real estate professionals who can use accelerated depreciation against ordinary income immediately
-
Short-term rental owners who meet the material participation tests
-
High-income owners with multiple properties, where the cumulative acceleration is substantial
-
Owners considering a §1031 exchange or eventual sale who want to think through the recapture implications before the study, not after
-
Owners with properties in states where federal-state depreciation conformity matters
If you are not sure whether your situation fits, the qualification analysis is the right first step.
Let's talk about your properties.
A thirty-minute Discovery Call is free. We will ask about your portfolio, your tax position, your goals for the property, and what you have heard about cost segregation. By the end of the call you will know whether a qualification analysis is worth pursuing.
If we are not the right firm for your situation, we will tell you and point you toward someone who is.