Florida Cost Segregation Studies
Engineering-Based Cost Segregation Studies
A cost segregation study identifies building and site components that may qualify for shorter federal tax depreciation periods. Criterium-Cromer Engineers prepares detailed, engineering-based cost segregation studies in Florida for commercial and income-producing properties throughout Miami-Dade, Broward, Palm Beach, and Monroe counties.
- Prepared under the oversight of a licensed Professional Engineer
- On-site evaluation and component-level cost analysis
- Fixed-fee proposal with a defined scope and schedule
Licensed P.E. Oversight
Direct engineering oversight throughout the study.
Engineering-Based Analysis
Property-specific evaluation using available records and recognized cost data.
CPA Coordination
Clear schedules and follow-up for your tax professional.
How It Works
Accelerate Depreciation Through Detailed Property Classification
Most residential rental buildings are generally depreciated over 27.5 years, while nonresidential buildings are generally depreciated over 39 years. Components that qualify for shorter recovery periods, commonly 5, 7, or 15 years, are identified through detailed property classification.
The study changes the timing of eligible depreciation deductions. It does not increase the property’s depreciable basis. The actual tax benefit depends on the property, ownership structure, placed-in-service date, available deductions, and the taxpayer’s individual circumstances.
Certain shorter-life assets may also qualify for bonus depreciation under applicable federal tax law. Your CPA or tax advisor should determine how the study results apply to your return.
Carpet, decorative lighting, specialty electrical, and certain non-structural finishes
Furniture, fixtures, and equipment not tied to the building’s structure
Parking lots, sidewalks, landscaping, site lighting, and other land improvements
Residential rental structures and their structural components
Commercial and other nonresidential building structures
Bonus Depreciation
What Is Bonus Depreciation?
Bonus depreciation allows businesses to deduct a large percentage of a qualifying asset’s cost in the year it is placed in service, instead of spreading the deduction over its full useful life.
A 2025 federal tax law permanently reinstated 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025. This applies to assets with useful lives of 20 years or less, including many of the 5-year, 7-year, and 15-year components identified in a cost segregation study.
Whether and how bonus depreciation applies to your property depends on placed-in-service date, asset type, and your individual tax situation. Your CPA or tax advisor should confirm eligibility and how it applies to your return.
Potential Candidates
When to Consider a Cost Segregation Study
A cost segregation study may be appropriate if you own income-producing real estate and have recently purchased, constructed, renovated, or placed the property in service. A study may also be useful for a property placed in service during a prior tax year.
- A recently acquired commercial or rental property
- A property depreciated for several years without a prior cost segregation study
- New construction or a major renovation
- A planned capital investment, portfolio review, or CPA request for detailed asset allocation
Not every property will justify a study.
We can review the property type, basis, timing, and available records before preparing a proposal.
Property Types
Income-Producing Properties We Evaluate
Eligibility and potential benefit depend on the property, its use, and the owner’s tax circumstances. If you’re evaluating a commercial property purchase, our Property Condition Assessment may also be relevant.
Multifamily & Long-Term Rentals
Apartment buildings and long-term residential rental properties.
Short-Term & Vacation Rentals
Income-producing condominium units and vacation rentals.
Office & Medical
Professional offices, medical facilities, and dental practices.
Retail & Restaurant
Retail centers, stores, restaurants, and tenant improvements.
Hotel & Hospitality
Hotels, motels, and other lodging properties.
Industrial & Specialty
Warehouses, industrial facilities, self-storage, and specialty uses.
Component Analysis
Examples of Components Evaluated
Qualifying classifications depend on the use, installation, function, and supporting documentation for each component. Depending on the property, the analysis may include:
- Specialty electrical and plumbing serving specific equipment
- Decorative finishes, millwork, and certain removable partitions
- Carpeting, window treatments, and selected interior finishes
- Appliances, equipment, furniture, and fixtures included in the depreciable basis
- Dedicated mechanical systems and specialty building systems
- Parking areas, sidewalks, fencing, landscaping, site lighting, and other land improvements
Study Scope
What the Study Includes
- Review of acquisition, appraisal, construction, renovation, depreciation, and cost records
- Visual inspection of accessible building, site, and property components
- Component-level evaluation based on use, installation, construction, and function
- Allocation of the depreciable basis using available records and recognized cost data
- Detailed report documenting methodology, assumptions, classifications, costs, and recovery periods
- Follow-up with the owner and tax professional regarding the findings
Each component is evaluated based on the applicable facts and federal tax guidance.
The study does not assume that every listed item qualifies.
Our Process
From Property Review to Completed Report
Review and Proposal
We review the property, basis, and timing. You receive a written proposal defining the scope, fee, and schedule.
Documents and Site Visit
We review available records and complete an on-site evaluation of accessible building and site components.
Analysis and Report
We classify applicable assets, allocate costs, prepare supporting schedules, and document the methodology and assumptions.
Delivery and Coordination
We provide the completed report and remain available to address questions about the engineering analysis and cost allocations.
Why Criterium-Cromer
Engineering Judgment, Not Just a Spreadsheet
A cost segregation study is only as defensible as the engineer signing it. Every Criterium-Cromer study is prepared under the direct oversight of a licensed Professional Engineer, with direct access to the person responsible for the analysis.
We prepare engineering-based cost segregation studies for income-producing properties across South Florida, following the framework in the IRS Cost Segregation Audit Techniques Guide, backed by the Criterium Engineers network, established in 1957 with 850,000+ buildings evaluated nationwide.
A licensed Professional Engineer and South Florida native, Casey combines building inspection, construction, and cost-estimating experience to deliver clear, supportable cost segregation studies, no call center, no hand-offs.
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. Frequently Asked Questions
Cost Segregation Questions
Can a study be completed for a property purchased in a prior year?
Yes. A study may still be completed after the year the property was placed in service. Your CPA or tax advisor can determine whether an accounting-method change, Form 3115, or another filing approach is appropriate.
Do I need complete construction records?
Not always. Actual project costs are preferred when available, but an engineering-based allocation may also use appraisals, plans, property records, observed quantities, and recognized construction cost data.
How much can a cost segregation study save?
Results vary substantially by property type, depreciable basis, construction, placed-in-service date, and the owner’s tax circumstances. The study identifies and allocates potentially qualifying assets. Your tax professional determines the resulting tax treatment and benefit.
Does a cost segregation study provide additional depreciation?
A cost segregation study generally accelerates the timing of eligible depreciation deductions by assigning qualifying components to shorter recovery periods. It does not increase the property’s total depreciable basis.
Can rental condominiums and short-term rentals qualify?
Potentially. A condominium unit or short-term rental used in an income-producing activity may be a candidate, depending on its basis, placed-in-service date, ownership, use, and included components. Personal-use limitations and other tax rules should be reviewed with your tax professional.
How long does the study take?
The schedule depends on the property size, complexity, available records, and site access. The anticipated delivery schedule will be included in the written proposal.
Does Criterium-Cromer Engineers provide tax advice?
No. We provide the engineering analysis, cost allocation, and supporting report. The property owner and tax professional are responsible for determining how the study is used for tax reporting.
Request a Cost Segregation Study Proposal
Fill out the form below with your property address and property type. We will review the information and provide a fixed-fee proposal with the recommended scope and schedule.
Prefer to talk? Call (305) 250-2936 or contact us by email.
Criterium-Cromer Engineers provides engineering and cost-allocation services and does not provide legal, accounting, or tax advice. Property owners should consult their CPA or tax advisor regarding eligibility, depreciation treatment, filing requirements, and the application of study findings to their individual tax circumstances.