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Engineering-based Cost Analysis

What Is Cost Segregation?


Cost Segregation is an engineering-based cost analysis of new or existing projects to accelerate depreciation expense for federal income tax purposes.


The following questions can help you determine whether you could benefit from a DASI cost segregation study.

  • Do you own commercial property or leasehold improvements constructed or purchased since January 1, 1994?
  • Are you paying federal income taxes?
  • Have you paid income taxes in the past five years that you would like to have refunded?
  • Would you like to reduce your income tax liability significantly over the next 5 to 10 years?
  • Would you like to improve your cash flow by accelerating tax depreciation deductions, which are entirely allowable under current tax laws?

Although any non-residential commercial property may qualify for substantial tax deferral and cash flow benefit, the following list is a representative sampling of property types with a high probability of significant cash flow benefit.

  • Restaurants
  • Hospitals
  • Hotels
  • Dealerships
  • Manufacturing Facilities
  • Office & Industrial Buildings
  • Medical Office Buildings
  • Capitalized Leaseholds
  • Retail/ Facilities
  • Airport Hangers
  • Grocery Stores
  • Multi-family Properties


DASI can help you achieve Substantial Tax Savings Benefits if you have done one of the following:

  • Purchased a commercial building or facility.
  • Constructed a new commercial building or facility.
  • Renovated, remodeled, restored or expanded an existing building or facility.
  • Paid for office or facility leasehold improvements.
  • Owned a commercial facility that was purchased or improved after January 1, 1994.

Why Cost Segregation?


Thousands of commercial property owners overpay federal income tax every year because they are missing out on allowable depreciation expense deductions. Ironically, these accelerated depreciation expense deductions are readily available to all federal taxpayers under existing IRS tax laws. However, without an engineering-based cost segregation analysis, the taxpayer is unable to take full advantage of the tax law, thus preceding the significant cash flow remitted to the IRS each year.


Acceleration of depreciation expense is easily achieved by engaging DASI Cost Segregation Group (DASI) to perform an engineering-based cost segregation study that identifies and “breaks out” personal property components and land improvements from the structural building costs.

Dasi Cost Segregation Group


If you have questions relative to your unique circumstances, please contact us. We would be glad to answer your questions and better explain the tremendous cash flow opportunities.

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