Minimize Investors’ Tax Liabilities with Strategic Cost Segregation

Accelerate depreciation, reduce taxable income and increase cash flow with expert-led cost segregation strategies tailored to your real estate fund’s unique needs.

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Why Real Estate Funds Should Act Fast on Cost Segregation in 2025

Accelerate Depreciation &
Reduce Tax Bills

Increase After-Tax IRR &
Cash Flow

Faster Capital Recycling
for New Deals

Harisimran Kaur Khalsa

President of Professional Services

Certified Cost Segregation Professionals

Harisimran Khalsa leads the cost segregation team at SponsorCloud with over 20 years of accounting experience, including 10 years specialized in real estate. As a former CFO in private equity, her expertise in financial strategy and tax compliance ensures that SponsorCloud's clients receive top-tier guidance in navigating the complexities of cost segregation and real estate tax optimization.

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Our Step-By-Step Cost Segregation Study Process

A proven 4-step approach that accelerates depreciation and delivers immediate tax savings.

Property Analysis

A specialist reviews construction costs, blueprints, and asset details to identify components that can be depreciated faster than the standard 39- or 27.5-year schedule.

Component Identification

We catalogue and evaluate every qualifying element (flooring, lighting, cabinetry, HVAC systems, and land improvements) to determine eligibility for accelerated depreciation under IRS guidelines.

Strategic Reclassification

Qualified components are strategically reclassified from standard depreciation schedules into accelerated 5-, 7-, or 15-year categories to maximize your immediate tax benefits.

Tax Filing & Deductions

We prepare IRS-compliant documentation, file required forms (4562, 3115), and claim your accelerated depreciation deductions to deliver immediate tax savings and enhanced cash flow.

Get Crystal Clear on Your Asset's True Value

When you know the precise cost basis of every component in your property, you can plan depreciation schedules, time asset sales, and increase after-tax returns.

Time Deals Around Depreciation Schedules

Know your depreciation runway years in advance, so you can time sales and acquisitions strategically.

Optimize Your Exit Strategies

Structure your sale to capture every dollar of after-tax profit by understanding exactly how depreciation will impact your gains.

Maintain Audit-Ready Documentation

Keep detailed records that satisfy auditors and streamline your annual reporting.

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Accelerated Depreciation for Immediate Tax Savings

Our cost segregation studies reclassify assets into shorter depreciation schedules (5, 7, or 15 years), accelerating deductions and increasing cash flow.

Increase After-Tax IRR and Investment Performance

Protect investors from taxable income while unlocking greater cash flow and long-term returns with cost segregation studies.

Minimize Investor Tax Exposure

Allocate depreciation benefits effectively to reduce taxable income.

Improve Investor Distributions

Increase cash flow availability for all your distributions.

Boost Investor Retention

Provide tax-efficient investment structures that attract and retain investors.

Increase Long-Term Returns

Improve tax efficiency to enhance overall investment profitability.

Reinvest Tax Savings

Use accelerated cash flow to scale and diversify your real estate portfolio.

Gain Competitive Advantage

Offer tax-advantaged investment opportunities to attract high-value investors.

Got Questions? 
We’ve Got Answers

What's the minimum hold period recommended for Cost Segregation Studies?

We use multi-layer verification processes where all calculations are checked against multiple data points. Every transaction is reconciled, waterfall calculations are verified down to the cent, and our team performs monthly account reconciliations to ensure complete accuracy.

What types of properties qualify for Cost Segregation?

Commercial buildings, multifamily properties, office buildings, retail spaces, industrial facilities, and mixed-use developments all qualify. Properties must have a cost basis of typically $500,000+ to justify the study investment.

Is a Cost Segregation Study worth it if I plan to sell the property soon?

Yes! Even if you plan to sell, a Cost Segregation Study can provide immediate tax benefits. Plus, a clear cost basis calculation helps in capital gains tax planning and asset disposition strategies, reducing potential tax burdens at the time of sale.

Can I perform Cost Segregation on properties I've owned for years?

Yes. "Look-back" studies can be performed on existing properties using IRS Form 3115, allowing you to claim missed depreciation without amending prior tax returns. This often results in substantial immediate refunds.

How long will my Cost Segregation study take?

At SponsorCloud, we outpace other CPAs and competitors by delivering a cost segregation study within 2 business days, powered by advanced technology and guided by expert oversight. For fund managers needing deeper analysis, we also offer a comprehensive study that takes 30–60 days and includes detailed documentation and engineering-level review.

Ready To Increase Your Fund's After-Tax IRR With Cost Segregation?

See how our cost segregation studies can reduce your investors' tax burden and improve cash flow across your portfolio.

Talk to an expert!