Cost Segregation Q&A: Accurate Estimates, Bonus Depreciation Myths, and High-Value Short-Life Assets

Brian hosts new account manager David Casper to answer common cost segregation questions during tax season, focusing on why accelerated depreciation estimates vary by property and why some competitors quote higher percentages and fees. They explain that their estimates are based on reviewing each property’s actual features (e.g., site and interior improvements) rather than flat percentages, and describe cost segregation as construction cost estimating that separates structural components (typically 27.5- or 39-year) from short-life assets. They address misconceptions about 100% bonus depreciation, clarifying it applies to eligible short-life assets, not the entire building, and that items like HVAC and water heaters usually remain long-life. They highlight wins such as tennis courts, exterior swimming pools, LVP flooring, fencing, patios/pavers, docks, and sea walls, and note high-rises can yield less. They also discuss using AI to sort workpapers while keeping engineers/accountants responsible for IRS-ready accuracy.

00:00 Meet David Casper

00:22 Tax Season Q&A Setup

00:40 Why Estimates Differ

03:45 How Cost Seg Works

06:05 Bonus Depreciation Myth

08:25 Big Wins to Look For

10:52 Pools Fences and Docks

14:38 AI in Cost Seg

16:44 Wrap Up and Thanks