A building booked as one 39-year asset
Eligible components often qualify for 5-, 7-, or 15-year MACRS lives: site work, specialty electrical, process systems, and interior build-outs. Without a study, that basis sits on the wrong schedule for years.
ServicesMVA · Quakertown, PA
Cost Segregation Studies in Quakertown, PA
Move depreciation forward on commercial and rental property. Partner-led studies with in-house engineering, real CPAs, and real site work.
The study lives inside your tax engagement
The partner who knows your entity structure reviews the study, coordinates §168(k) bonus elections, and ties results to your overall tax projection, not a one-off PDF from a referral shop.
How this saves you money
- Move depreciation forward. Reclassify site work, specialty electrical, and interior build-outs into 5-, 7-, and 15-year MACRS lives instead of leaving the whole purchase on a single 39-year schedule.
- Bigger year-one deduction. When bonus depreciation applies to qualifying short-life property, a study can materially shift first-year deductions versus straight-line treatment on a commercial acquisition.
- Free up cash now. Accelerated deductions reduce current-year tax, putting capital back to work in the business rather than parked on a slow recovery schedule.
- Coordinated with bonus elections. Your partner times §168(k) elections against your full tax projection, so the study feeds the plan.
- Defensible if examined. In-house engineering and tax allocate basis across MACRS classes with documentation built to hold up under inquiry.
Best fit: Commercial or rental property acquired, built, or improved, especially when a large year-one deduction changes cash taxes
How the engagement runs
01 · Qualification call
We review acquisition or improvement facts, property type, placed-in-service timing, and whether a study pencils for your tax position.
02 · Site & document review
Engineering and tax staff examine plans, invoices, and on-site conditions to identify components eligible for shorter recovery periods.
03 · Allocation & modeling
Basis is allocated across MACRS classes with defensible documentation, ready for your return and any future inquiry.
04 · Year-one integration
First-year deductions are modeled against bonus depreciation rules and folded into quarterly tax planning.
The year-one math on a modeled $4M acquisition
On a modeled $4M commercial acquisition, reclassifying eligible short-life property can materially shift year-one deductions versus straight 39-year treatment, especially when 100% bonus depreciation applies to qualifying 5-, 7-, and 15-year property. Results depend on facts; we model yours before you commit.
Who this is forCommercial real estate · Construction · Manufacturing · Distribution · Hospitality · Medical & office build-outs
Common questions
- Who is a cost segregation study for?
- Owners of commercial or rental property who acquired, built, or substantially improved real estate generally worth studying, especially when bonus depreciation or a large year-one deduction would change cash taxes.
- How is MVA’s study different from a national referral firm?
- The work stays under the same roof as your tax planning. Your MVA partner coordinates elections, entity structure, and follow-on planning long after the report is delivered.
- Can I see how MACRS classes work before engaging?
- Yes. Use our interactive Cost Segregation Explorer on the site to click building components and read first-year deduction impacts on a sample model.
- When should I start?
- Before the tax year closes on a new acquisition or major improvement, or when refinancing or disposition planning makes basis allocation relevant.
A building isn't one asset. It's four MACRS classes,
four recovery rates.
Click any component. The readout updates with its tax classification, allocated basis, and year-one deduction under §168(k) OBBBA 100% bonus depreciation. The 39-year shell is the baseline we move basis away from.
MACRS class
5-year personal property7-year equipment15-year land improvements / mech39-year building shell
Caption · Modeled on a $4M commercial acquisition. OBBBA §168(k) 100% bonus depreciation applied to property acquired and placed in service after January 19, 2025. Components illustrative; real cost-segregation studies are engineer-reviewed and reconciled to closing documents, depreciation schedules, and as-built drawings.