Curated News
By: NewsRamp Editorial Staff
May 21, 2026
Cost Segregation: The Tax Break Your CPA May Not Mention
TLDR
- CostSegRx's engineering-based cost segregation gives real estate investors a competitive edge by accelerating depreciation and increasing cash flow.
- Cost segregation studies now cost-effectively accelerate depreciation on small residential properties by reclassifying assets into shorter-lived categories.
- Affordable cost segregation from CostSegRx empowers smaller investors to access tax savings once reserved for large commercial properties.
- Many CPAs never mentioned cost segregation to investors, but now affordable engineering studies make it accessible for small properties.
Impact - Why it Matters
This matters because many real estate investors are overpaying taxes by using straight-line depreciation instead of cost segregation, which can accelerate depreciation and boost cash flow. With affordable engineering studies now available for smaller properties, investors can potentially save tens of thousands in taxes. Understanding this strategy empowers investors to proactively discuss it with their CPA and maximize returns on their properties.
Summary
Many real estate investors miss out on significant tax savings because their CPAs never mention cost segregation. Brian Kiczula, principal of CostSegRx, explains that historically, cost segregation studies were too expensive for smaller properties, often costing thousands of dollars, which made them impractical for modest portfolios. As a result, CPAs defaulted to straight-line depreciation, and that practice stuck even as engineering-based studies became cost-effective for smaller residential properties. Kiczula emphasizes that these are not DIY reports or online calculators but actual detailed engineering studies performed by professionals. He notes that some CPAs lack deep real estate investment knowledge or simply don't focus on it, leaving investors to bring up the topic themselves.
Kiczula advises investors not to commission a study first but to get a free estimate of benefit from CostSegRx and take it to their CPA for review. This approach respects the CPA's expertise and ensures the depreciation benefits align with the investor's tax situation, considering factors like active vs. passive income. If a CPA still objects, Kiczula suggests evaluating whether the pushback stems from unfamiliarity or genuine analysis. He sometimes cancels proposals when a study wouldn't benefit the client, such as when a property sale is imminent or losses can't be used. CostSegRx offers complimentary estimates with no obligation.
The firm, led by Kiczula and a member of the American Society of Cost Segregation Professionals, serves residential and commercial investors nationwide. The key message is that modern cost segregation is accessible and can generate substantial tax savings, but investors should approach it collaboratively with their tax professional. By obtaining an independent estimate, investors can bring concrete numbers to the table and make informed decisions.
Source Statement
This curated news summary relied on content disributed by Keycrew.co. Read the original source here, Cost Segregation: The Tax Break Your CPA May Not Mention
