Unlock six figures of depreciation on your commercial building.
Cost segregation studies for commercial and 5+ unit residential properties nationwide. Fixed fees and specialist-reviewed reports — coordinated by an accounting firm with a real office and real people.
Many commercial properties benefit — some more than others
Multifamily · 5+ units
Apartment complexes and 5+ unit residential — commercial tax treatment, strong reclassification.
Office
Class A, B, and C office buildings, medical office, professional buildings.
Retail & restaurants
Strip centers, standalone retail, quick-service and full-service restaurants.
Industrial & warehouse
Manufacturing, distribution, flex space, cold storage, self-storage facilities.
Hospitality
Hotels, motels, resorts, extended-stay — typically the highest reclassification percentages.
Medical & dental
Specialty electrical, plumbing, and finishes drive strong short-life allocations.
Add Audit Support — $300
Highly recommendedIf it's ever questioned, the deduction survives on documentation — the engineering methodology, the asset-by-asset breakdown, the source records, and a clear written answer to the examiner's letter. Without that, the reclassification can be disallowed even when it was correct.
- Supporting documentation
- Methodology explanations
- Technical help answering report questions
- Support for your representative
- IRS representation is separate
- One flat fee per report
A real commercial cost segregation report
Redacted example of a standard commercial report. Preview in-browser or download the PDF — no lead form.
Commercial building cost segregation study
A redacted example of a standard report — itemized asset classifications, estimated component costs, and recovery periods.
- Property-specific analysis
- Full asset detail: 5-, 7-, 15-, and 39-year reclassifications
- Methodology narrative and estimated component costs
- Supporting construction-cost references
IRS Form 3115 preparation
Form 3115 is a request to change an accounting method. For some cost segregation look-back studies, it is used to claim previously missed depreciation. Marlow Accounting offers Form 3115 preparation upon request, subject to a separate engagement and fee. Purchasing a cost segregation study does not automatically include Form 3115 preparation, review of prior tax returns, depreciation implementation, tax return preparation, tax planning, or a determination of whether Form 3115 is necessary. Unless Marlow Accounting is separately engaged for those services, the taxpayer and their tax professional are responsible for determining the appropriate tax treatment.
- First Form 3115
- $1,500
- Each additional Form 3115
- $1,100
- Second, third, and subsequent forms
Pricing is subject to change if the property in question has more than 10 subassets (individual depreciable components). This may result in additional costs.
Documents needed for Form 3115
- Two years of previous tax returns — personal and business.
- Depreciation schedules as prepared by your previous accountant.
- A copy of the cost segregation report for the property in question. If the study was obtained through Marlow Accounting, we can provide the completed report.
These are the baseline documents. Additional documents may be requested if necessary.
TaxDome uploads only
Upload these documents only through our secure TaxDome client portal — not through this website form or as email attachments. If you don't have portal access yet, email cory@marlowaccounting.com and include the first name, last name, phone number, and email address of the person who needs access. Our team will set up your account and follow up with login instructions.
After uploading, you MUST send us a message in TaxDome and/or email cory@marlowaccounting.com to let us know your documents were dropped off. If you do not notify us, we will not know the documents were uploaded.
Download your commercial questionnaire
Pick the form that best matches your property type, fill it out in Excel, and email it back. That kicks off your study.
Commercial · 5+ units & non-residential
Multifamily 5+, office, retail, industrial, hospitality, medical, and specialty.
Apartments (5+ units)
Apartment complexes and 5+ unit residential buildings.
Office Building
Class A, B, or C standalone office buildings.
Office Condo
Individually-owned commercial office condominium units.
Retail
Strip centers, standalone retail, and small retail buildings.
Retail Pharmacy
Standalone pharmacy retail buildings.
Retail Condo
Individually-owned retail condominium units.
Restaurant
Quick-service and full-service restaurant buildings.
Warehouse
Distribution, flex space, cold storage, and industrial warehouse.
Storage Facility
Self-storage and mini-storage facilities.
Nursing Home
Skilled nursing, assisted living, and long-term care facilities.
Hotel / Motel
Hotels, motels, resorts, and extended-stay properties.
Dental / Medical / Veterinary
Specialty medical, dental, and veterinary office buildings.
Daycare
Child-care and daycare facility buildings.
Bank
Standalone bank branch buildings.
Auto Service
Auto repair, service centers, and car-wash facilities.
Animal Grooming Facility
Pet grooming, boarding, and animal care facilities.
Mixed-Use
Buildings combining residential, retail, or office uses.
Improvements & New Construction
Leasehold improvements, major renovations, and ground-up builds.
Client Improvements
Leasehold or tenant improvements to an existing building.
Client Improvements or New Construction
Ground-up construction, major renovations, or large additions.
Where the accelerated deductions come from
Commercial buildings are depreciated over 39 years by default. That's a slow drip. A properly-scoped cost segregation study commonly reclassifies 15–40% of the depreciable basis into 5-, 7-, and 15-year categories — hospitality and specialty-use properties skew toward the top of that range.
Short-life property in a commercial context includes decorative finishes, dedicated process electrical, specialty plumbing, decorative millwork, movable partitions, kitchen equipment build-outs, medical/dental infrastructure, security and specialty low-voltage systems, and much more. Land improvements — parking lots, sitework, fencing, exterior lighting, landscaping — sit at 15 years.
For a look-back study on a property placed in service in a prior year, the cost segregation report itself does not include Form 3115 or its supporting filing. Form 3115 preparation is available as a separate engagement at the fees listed above. When applicable, missed depreciation may often be claimed as a current-year catch-up without amending prior returns — your tax professional should confirm the right treatment.
Our cost segregation study methodology
Our cost segregation studies use a data-driven approach based on thousands of previously completed engineering studies. Using information about your property — including its building type, location, size, and other characteristics — specialized software compares your property against similar buildings to identify assets that may qualify for accelerated depreciation.
Reports use a Detailed Engineering Cost Estimate methodology, combined with modeling and sampling, and draw on industry-standard construction cost databases such as RSMeans and Marshall & Swift.
The analysis estimates the allocation of property costs into different depreciation categories, including:
5-year property
Certain equipment, fixtures, and other qualifying personal property.
15-year property
Qualifying land improvements, such as parking lots, sidewalks, and landscaping.
27.5- or 39-year property
The remaining building components, depending on the property's use.
Marlow Accounting coordinates each study. The technical reports are generated with specialized software and then go through a manual quality-control review by third-party cost segregation specialists. During that review, available property information may be verified using public records, property databases, real estate listings, and photographs.
The result is a customized cost segregation report that identifies potential depreciation deductions and opportunities to reduce your tax liability.
This methodology uses historical engineering data and property-specific information rather than an on-site engineering inspection. Standard studies are completed remotely and do not require an on-site inspection — though if optional audit support was purchased and an IRS audit occurs, an inspection may become necessary depending on the circumstances.
Every report documents how each classification was determined, using a methodology aligned with the IRS Audit Techniques Guide. Standard reports do not automatically include an individual engineer's signature; if you specifically require a professional signature, let us know before proceeding so we can discuss the request.
What we need from you
Closing statement or AIA / construction docs
Purchase settlement statement, or AIA G702/G703 and pay-app history for new construction.
Blueprints / as-builts
Architectural, structural, MEP drawings if available. Not required — photos can work.
Rent roll (multifamily) or lease abstracts
Helpful for classifying tenant-specific improvements.
Placed-in-service date + prior depreciation schedule
For look-back studies, we need the last CPA-prepared depreciation schedule.
Ready to request a quote for your building?
A quote for our fee will be provided within one week of submitting the completed property information form. We serve property owners anywhere in the U.S.