Start your cost segregation study
Who is the study for?
Year-end planning. Property placed in service (ready and available for its intended use) by December 31, 2026, for a calendar-year taxpayer, can be depreciated on that taxpayer's 2026 return, including the shorter-lived property a cost segregation study identifies.
Frequently Asked Questions
What does ClickDrag Finance ask before you order a cost segregation study?
ClickDrag Finance asks whether the cost segregation study is for you, a family member or friend, or a client. A CPA or tax advisor ordering for a client is then asked only whether the study comes from ClickDrag or from the professional's own firm; on the ClickDrag client order, the client property's purchase price plus construction costs decide the product: the cost segregation workpaper under $2.0 million, or the cost segregation study from $2.0 million up to $250 million. An owner, or someone ordering for a family member or friend, is asked whether the purchase price plus construction costs total under $2.0 million, an optional question about whether the owner is also a small business owner or earns over $500k a year, and whether the owner plans to transfer part or all of the real estate holding company within the next three months, and ClickDrag Finance then sends you to the next step for your property. Some visitors are first asked the kind of property and a rough purchase price plus construction costs, and shown an estimated first-year deduction, before these questions.
What is a cost segregation study?
For a rental or business property, a cost segregation study separates the components that qualify for 5-, 7- and 15-year depreciation lives from the structure, which is depreciated over 27.5 years for residential rental property or 39 years for nonresidential real property under IRC §168(c). A cost segregation study accelerates depreciation deductions; over the life of the building the same basis is recovered either way, and whether a deduction is usable in a given year can be limited by the passive-activity rules of IRC §469 and by the basis, at-risk (§465) and excess business loss (§461(l)) limits. ClickDrag Finance explains the steps in how a cost segregation study works. For a property held through a Qualified Opportunity Fund, ClickDrag Finance covers the depreciation questions in opportunity zone cost segregation.
Can I order a cost segregation study online for a property over $2.0 million?
Yes, for an owner, up to $250 million, but not by card. For a rental or business property whose purchase price plus construction costs total $2.0 million or more, a cost segregation study starts with a short call, then a proposal, an engagement letter and an invoice, with no card checkout. For a property that totals under $2.0 million, ClickDrag Finance sends the owner to the order for the cost segregation report. Above $250 million, or when the owner is not sure of the figure, no online order is offered: above $250 million ClickDrag Finance offers a call with an advisor, and when the owner is not sure our Managing Director, Howard Krieger, reaches out personally. A fund sponsor is also sent to a request page for that personal outreach, at any size.
Can a CPA or tax advisor order a cost segregation study for a client?
A CPA or tax advisor can order a cost segregation study for a client: a tax professional who answers "for a client" chooses who the client's cost segregation study comes from, and is not asked the property's size on the qualifier page. When the study comes from ClickDrag, the professional goes to the client order, which asks for a name, a firm name and an optional phone and then the property: for a client property whose purchase price plus construction costs total under $2.0 million the order is for the cost segregation workpaper, which ClickDrag prepares as a workpaper for the client's tax preparer and which is reviewed before release, and from $2.0 million up to $250 million it is the cost segregation study. When the study comes from the professional's firm, the firm reviews, approves and signs the cost segregation study as its preparer, under its own name, in a firm workspace. To compare providers first, see the best cost segregation companies.
Does the ClickDrag Finance qualifier page give an estimate of cost segregation depreciation?
The ClickDrag Finance qualifier page may show an estimated first-year deduction, from the kind of property and a rough purchase price plus construction costs, before it asks for an email; the only figure it asks an owner about is the purchase price plus construction costs, as a rough band or as whether the total is under $2.0 million. An estimate on the qualifier page assumes 100% bonus depreciation, which applies to qualified property acquired after January 19, 2025, and is a planning range, not a completed study. ClickDrag Finance's free cost segregation calculator estimates first-year depreciation from the facts you enter, and an estimate is not a completed study.
How do I get a cost segregation study done?
To get a cost segregation study done with ClickDrag Finance, start at the qualifier page, which in its standard version asks two to four short questions and sends you to one of four places: for a property you, a family member or a friend owns whose purchase price plus construction costs total under $2.0 million, the order for the cost segregation workpaper; for such a property that totals $2.0 million or more, up to $250 million, the order for the cost segregation study; for a client's property, the client order, where the property's purchase price plus construction costs decide between the cost segregation workpaper and the cost segregation study; or the firm workspace, where a CPA or tax advisor's own firm reviews, approves and signs the client's cost segregation study as its preparer, under its own name. When an owner is not sure of the figure, or runs a fund, the page sends them to a request page instead and our Managing Director, Howard Krieger, reaches out personally.