Don't Pay Taxes.
Cost Segregation is a powerful tax-savings tool that allows you to take large depreciation deductions on properties you own for business. By using our cost segregation services, you can reasonably expect 25% or more of your purchase price as a year-one deduction.
We are based in Portland, Oregon and we create professional, accurate, and defensible Cost Segregation studies for real estate professionals. Costs are $1 / square foot or less to save hundreds of thousands or even millions in taxes.
email: dan@pnwcostseg.com
text: 503-724-7065
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What is Cost Segregation?
Every property used for business purposes must be depreciated on your tax return, meaning you are required to take a deduction on your federal and state taxes to offset your income. The deduction is equal to about 3.6% of your property's improvment value (for residential properties) or about 2.5% for commercial properties, per year. With cost segregation, you can accelerate your depreciation to take, on average, 25% or more of your total basis in the property as a deduction in the first year of your ownership. You can also use cost segregation studies to "catch up" depreciation on older buildings, providing similar tax savings even if you did not acquire the property in the current tax year.
Legal Analysis
Cost segregation is grounded in tax law, not estimates or rules of thumb.
Our attorneys and real estate professionals analyze how your property is actually used, applying IRC §§ 168, 1245, 1250, 263A, and controlling case law to properly classify assets. The result is a defensible allocation that holds up under IRS scrutiny and aligns with how the building operates in the real world.
Construction Analysis
Accelerated depreciation requires construction fluency.
We identify and value short-life assets by examining building systems, materials, finishes, and site improvements—using real construction pricing, not generic percentages. This ensures components are accurately classified into 5-, 7-, and 15-year property where allowed.
Work Product
You receive audit-ready deliverables.
Our work product includes a full cost segregation report, detailed asset schedules, and depreciation tables compatible with your tax filings. Every allocation is documented, sourced, and explained—so your CPA can file with confidence and you can defend the result if challenged.
Important Cost Segregation Information
Eligible Properties
Cost segregation can be performed on any real property used in a trade or business or held for the production of income. This includes multifamily, mixed-use, office, retail, industrial, hospitality, and specialized assets. Both newly acquired properties and properties owned for years are eligible—look-back studies allow missed depreciation to be recaptured without amending prior returns.
Who Benefits Most
Cost segregation is most powerful for Real Estate Professionals, who can often use accelerated depreciation to offset active income rather than being limited by passive loss rules. That said, it remains highly beneficial for non–real estate professionals when a property has strong cash flow, significant capital improvements, or a long hold period—where front-loaded depreciation meaningfully improves after-tax returns.
IRS Scrutiny and Doing It Right
Cost segregation is well-established tax law, but the IRS does challenge studies that are poorly prepared, overly aggressive, or unsupported. Defensibility matters. Proper studies require legal analysis, construction understanding, and clear documentation tying asset classifications to how the property is actually built and used. Done correctly, cost segregation is both powerful and sustainable.
About Us
Daniel DiCicco is an Oregon attorney, real estate developer, and property manager with deep experience structuring, operating, and defending real estate investments. Daniel combines legal analysis with hands-on development and asset management to deliver cost segregation studies that are technically sound, operationally grounded, and audit-defensible. His focus is on optimizing depreciation and tax outcomes in a way that aligns with how properties are actually built, used, and owned—so clients keep more of what they earn while minimizing risk.
Jody Cienfuegos is a senior commercial real estate executive with 15+ years of experience supporting and leading transactions totaling billions of dollars across institutional, private equity, and family office platforms. Jody brings deep fluency in deal underwriting, capital structures, and transaction-grade documentation—ensuring cost segregation studies are aligned with investor objectives, lender requirements, and audit risk. Her background in title, banking, and national account leadership allows her to coordinate owners, CPAs, engineers, and counsel to deliver defensible analyses that translate directly into accelerated cash flow and improved after-tax returns.
