100% Bonus Depreciation Restored — OBBBA 2025

Cost Segregation Studies in Texas — Accelerate Depreciation and Keep More Cash in Your Business

If you own commercial or rental property in Texas, you may be depreciating it over 27.5 or 39 years — when 20-40% of the building's components could be written off in 5, 7, or 15 years instead. With 100% bonus depreciation now permanently restored, a cost segregation study can put tens or even hundreds of thousands of dollars back in your pocket in year one. Texans vs Taxes partners with CSSI, America's leading cost segregation firm, to deliver engineering-based studies backed by 60,000+ completed nationwide.

Get a Free Savings Estimate Call (210) 273-1177
What Is Cost Segregation?

The Tax Strategy Most Property Owners Have Never Heard Of

When you buy a commercial building, the IRS says you must depreciate it over 39 years (or 27.5 years for residential rental property). But not every part of a building has a 39-year lifespan. Flooring, cabinetry, parking lots, landscaping, specialty lighting, and certain electrical and plumbing systems all deteriorate much faster — and the IRS allows you to depreciate them over 5, 7, or 15 years instead.

The Problem: Slow Depreciation

Under straight-line depreciation, a $5 million commercial building generates roughly $128,000 in annual deductions spread evenly over 39 years. That's the default if you don't act — and it leaves significant cash flow locked up for decades.

The Solution: Cost Segregation

An engineering-based cost segregation study identifies which components of your building can be reclassified into shorter depreciation categories. Typically, 20-40% of a building's cost can be reclassified — dramatically increasing your first-year deductions and freeing up cash you can reinvest immediately.

The Multiplier: 100% Bonus Depreciation

The One Big Beautiful Bill Act (OBBBA), signed July 2025, restored 100% bonus depreciation for assets placed in service after January 19, 2025. Components identified in a cost segregation study that fall into 5, 7, or 15-year categories can now be fully deducted in year one — not over 5 or 15 years, but immediately.

The Texas Advantage

Texas has no state income tax, simplifying the process. And starting with reports due in 2026, the Texas Comptroller now allows businesses to align their franchise tax depreciation with federal 100% bonus depreciation — eliminating the book-to-tax reconciliation headache that plagued Texas CPAs for years.

Example: $5M Office Building in San Antonio

A property owner purchases a $5 million office building. An engineering-based cost segregation study identifies $1.3 million in components that can be reclassified from 39-year property to 5, 7, and 15-year categories. With 100% bonus depreciation under the OBBBA:

$1.3M
Reclassified from 39-year to short-life
$520K+
Estimated first-year tax savings
26:1
Return on study cost

Based on a 40% combined effective tax rate. Actual savings depend on property specifics, tax situation, and applicable rates. Case study source: Leyton San Antonio office building study, 2025.

Who Benefits

Property Types That Benefit From Cost Segregation

Any income-producing property placed in service after 1986 qualifies. The larger the depreciable basis, the greater the savings — but even properties valued at $150,000+ can produce meaningful results.

🏢

Office Buildings

Specialty HVAC, data cabling, built-in cabinetry

🛒

Retail & Shopping Centers

Signage, tenant improvements, site work

🏭

Industrial & Warehouses

Specialized electrical, loading docks, paving

🏨

Hotels & Hospitality

FF&E, decorative finishes, kitchen equipment

🏥

Medical Facilities

Specialized plumbing, lab buildouts, imaging rooms

🍽️

Restaurants

Kitchen equipment, specialty ventilation, décor

🏘️

Multi-Family & Apartments

Appliances, flooring, landscaping, parking

🏠

Rental Homes & Airbnb

Cabinets, countertops, appliances, landscaping

How It Works

The Cost Segregation Process — From Free Estimate to Tax Savings

The process is straightforward, and it starts with a free analysis so you can see your potential savings before committing to anything.

1

Free Preliminary Analysis

You provide basic property information — type, purchase price, year acquired or built. We run a preliminary savings estimate so you can see the potential benefit before committing. This costs you nothing and takes minutes.

2

Engineering-Based Site Inspection

CSSI engineers visit the property to inspect and document every qualifying component — reviewing blueprints, taking measurements, and photographing assets. This on-site analysis is what makes the study IRS-defensible.

3

Detailed Study & Asset Reclassification

Engineers classify each component into its proper IRS depreciation category (5, 7, 15, 27.5, or 39 years) and produce a comprehensive technical report with full cost allocation and depreciation schedules.

4

CPA Implementation on Your Tax Return

This is where the Texans vs Taxes advantage kicks in. Mike Berlanga, as your CPA, implements the study findings directly on your federal tax return — applying the accelerated depreciation, bonus depreciation, and any applicable catch-up deductions via Form 3115 for properties owned in prior years. No handoff to a third-party CPA who doesn't understand the study.

5

Ongoing Support & Audit Protection

Every CSSI study includes complimentary audit representation. If the IRS ever questions the study, CSSI's team defends it at no additional cost. Over 60,000 studies completed — never a single audit reversal.

Your Team

Two Experts, One Seamless Process

Cost segregation requires two kinds of expertise: engineering analysis to identify and classify building components, and CPA-level tax knowledge to implement the findings correctly on your return. Most firms only provide one. We provide both.

Tom Brodie

National Account Executive, CSSI • MBA, Texas A&M

Tom coordinates the engineering-based cost segregation study. A Houston native with a finance degree and MBA from Texas A&M, Tom spent 26 years in the oil and gas industry before joining CSSI in 2019. He's worked with property owners of all sizes, identifying millions of dollars in tax savings through CSSI's proven methodology — 60,000+ studies completed, over $10 billion in identified savings, and zero IRS audit reversals.

Mike Berlanga

CPA, Licensed Broker & Sr. Tax Consultant • Master's in Taxation, UTSA

Mike handles the tax return implementation. As a CPA with a Master's in Taxation and 40+ years of experience, he ensures the study findings are applied correctly and maximally — including bonus depreciation elections, Form 3115 catch-up deductions for prior-year properties, and integration with your broader tax strategy. He also evaluates whether additional strategies like 1031 exchanges or property tax protests should be layered on.

See It in Action

Learn How Cost Segregation Works

Watch Tom Brodie explain how cost segregation studies work, who benefits, and why the return of 100% bonus depreciation makes 2025-2026 the best time to act.

Frequently Asked Questions

Cost Segregation — Common Questions

What is a cost segregation study?
A cost segregation study is an engineering-based tax strategy that reclassifies components of a commercial or rental property from the standard 27.5 or 39-year depreciation schedule into shorter recovery periods of 5, 7, or 15 years. Items like flooring, cabinetry, specialty lighting, landscaping, paving, and certain electrical and plumbing components are separated from the main building structure. This accelerates your depreciation deductions, reduces taxable income in the early years of ownership, and puts significant cash back into your business. The IRS has approved this methodology, and engineering-based studies are the gold standard.
The OBBBA restored 100% bonus depreciation for qualifying assets placed in service after January 19, 2025 — permanently. Under the prior law (TCJA), bonus depreciation had phased down to 40% for 2025 and was heading to 0% by 2027. Now, components identified through a cost segregation study that fall into 5, 7, or 15-year categories can be fully deducted in the first year. This makes cost segregation more powerful than it's been since 2022, with no currently scheduled expiration.
Any individual or business that owns income-producing real estate: commercial buildings, rental properties, multi-family housing, office space, retail, industrial, medical, restaurants, hotels, and even single-family rentals and Airbnb properties. The property must have been placed in service after 1986 and should have a depreciable basis of at least $150,000-$500,000 for the study to produce meaningful savings. Properties you've owned for years can also benefit through a "look-back" study.
Studies typically range from $2,000 to $15,000 depending on property size, type, and complexity. The tax savings almost always far exceed the cost — most studies deliver a return of 5:1 to 10:1 or higher in the first year alone. Through our partnership with CSSI, we provide a free preliminary analysis so you can see your estimated savings before committing to a full study. You know the numbers before you spend a dollar.
Yes. A "look-back" study captures missed depreciation from prior years without filing amended returns. The IRS allows you to claim the cumulative catch-up deduction in the current tax year using a Form 3115 change in accounting method. Mike handles this implementation as part of your tax return preparation, ensuring the catch-up deduction is applied correctly.
No. CSSI has completed over 60,000 engineering-based studies and has never had a study reversed by the IRS. The key is that the study must be engineering-based (not just an accounting estimate), properly documented, and defensible under the IRS Cost Segregation Audit Techniques Guide. Every CSSI study includes complimentary audit representation — if the IRS ever questions the study, CSSI's team defends it at no additional cost to you.
Most cost segregation firms deliver a study report and then hand it to your CPA to figure out. The problem: many CPAs aren't familiar with cost segregation implementation, bonus depreciation elections, or Form 3115 catch-up procedures. With Texans vs Taxes, Mike Berlanga — as your CPA — implements the findings directly on your return. He also evaluates whether additional strategies like property tax protests , 1031 exchanges , or entity restructuring should be layered on top of the cost segregation savings.

Get Your Free Cost Segregation Estimate

Tell us about your property and we'll run a preliminary savings analysis at no cost. You'll see the numbers before you commit to anything.

100% Bonus Depreciation Is Back. The Window Is Open.

Properties placed in service after January 19, 2025 qualify for full first-year expensing of reclassified components. Get a free estimate and find out how much cash your building is sitting on.

Call (210) 273-1177 Email mike@asktvt.com

Cost segregation studies performed in partnership with CSSI (Cost Segregation Services, Inc.).

This page provides general information about cost segregation and is not a substitute for personalized tax advice. Consult with a CPA or tax professional for your specific situation.