What Are Cost Segregation Services? Cost Segregation Services are a powerful tax strategy designed to help property owners accelerate depreciation and reduce taxable income. A cost segregation study identifies and reclassifies building components—such as fixtures, electrical systems, and specialized equipment—into shorter depreciation categories (5, 7, or 15 years), instead of the standard 27.5 or 39 years. This allows property owners to unlock immediate tax savings and improve cash flow. How a Cost Segregation Study Works A professional cost segregation study involves engineering analysis, tax expertise, and detailed asset classification. At O’Connor, the process begins with a preliminary review to estimate potential savings, followed by a comprehensive evaluation of the property. Key steps include: Initial assessment and savings estimate Engineering-based property analysis Identification of short-life depreciable assets Delivery ...