Scarpello Consulting
Call 877.410.5040
A Scarpello engineer walks the finished lobby of a new apartment building, looking up at the ceiling fixtures he is cataloguing.

Cost segregation since 2001

Deduct your building in years, not decades.

Our engineers and in-house tax team reclassify the parts of your property that wear out sooner into 5, 7 and 15-year lives, so you deduct more this year and keep the cash.

Check if my building qualifies I'm a CPA firm

In business since

2001

Studies completed

10,000+

CPA partnerships

100+

Team experience

100+ yrs

Choose your path

One study. Two ways to bring it in.

Property owners You bought, built or renovated a building. Find the depreciation your return is leaving on the table, including on property you placed in service years ago. See if you qualify CPA firms Your client asked about cost segregation. Offer the study under your relationship. We handle the engineering, the report and the audit defense. How partnering works

Why it matters

Most of a building wears out long before 39 years. The tax code lets you say so.

A worked example from our files

Reclassified to a 7-year life

$2,000,000

Tax saved in year one

$103,192

Saved over five years

$525,000+

A commercial building normally depreciates over 39 years and residential rental over 27.5. A study moves the qualifying parts onto 5, 7 and 15-year schedules.

An engineer measures a new restaurant's kitchen line with a laser meter during a site tour.

Built, bought or renovated since 1987?

Most of those properties qualify. Missed years can be caught up now, without amending returns.

Check the four questions

What we do

Engineering and tax law under one roof.

Engineers, estimators and a dedicated in-house tax team whose sole practice is the tax law. Every project is reviewed by that team before it leaves the building.

Cost segregation studies

An engineering-based review that identifies, classifies and separates the personal property inside your building so it depreciates over 5, 7 and 15 years.

Look-back studies

Placed a property in service in a prior year? Under Rev. Proc. 2015-13, missed depreciation comes back this year on Form 3115, with no amended returns.

Green building incentives

Federal, state, utility and green-financing programs change often. Talk to us before major construction starts and we'll map which ones your project can use.

Audit support

If the IRS has questions, we have the answers. We defend our studies and supply the documents at no cost, no matter when the study was done.

Also through Scarpello and vetted partners: business valuation, research and development tax credits, property tax assistance.

How a study works

Four steps, one report that holds up to scrutiny.

  1. 01

    Identify the improvements

    We review the building plans and tour the site to find every component that can be reclassified.

  2. 02

    Quantify the property

    Detailed cost data separates real property from personal property, line by line.

  3. 03

    Document everything

    Each decision is recorded, leaving a thorough, supportable audit trail behind the numbers.

  4. 04

    Explain the method

    The final report details the costing methods used, so your CPA and the IRS can follow every figure.

A property owner walks a newly finished apartment building with a Scarpello project lead.

For property owners

Four questions that tell you if a study pays.

Tick everything that applies to your property

Tick the boxes above to see where you stand.

Building types we study: apartments, senior living and memory care, auto dealerships, offices, restaurants, hotels, medical buildings, retail and industrial warehouses.

Check if my building qualifies

Case studies

Results, filed and documented.

  • The apartment buildings from the Block RE Services study. Apartment complex

    Block RE Services

    $6.78M of the building moved into 5, 7 and 15-year lives.

    Building cost
    $49.6M
    Year-one savings
    $2.95M
  • The courtyard and garden paths of Royal Palm Senior Living. Senior living

    Royal Palm Sr. Living

    $6.23M of the building moved into 5, 7 and 15-year lives.

    Building cost
    $20.8M
    Year-one savings
    $2.77M
  • The Johnstone Supply warehouse and its loading area. Look-back · industrial

    Johnstone Supply

    $4.52M reclassified years after purchase, with no amended returns.

    Building cost
    $5.53M
    Year-one savings
    $1.57M
  • The Securities America office building. Office complex

    Lund Securities America

    $3.43M of the building moved into 5, 7 and 15-year lives.

    Building cost
    $17.7M
    Year-one savings
    $1.51M
  • The Wendy's restaurant from the study. Quick-service restaurant

    Wendy's

    $1.81M of a single restaurant moved into shorter lives.

    Building cost
    $3.44M
    Year-one savings
    $806K
  • The Kentson Car Company showroom building. Look-back · auto dealership

    Kentson Car Company

    $897K reclassified years after purchase, with no amended returns.

    Building cost
    $2.54M
    Year-one savings
    $206K

Figures from Scarpello's published case studies, calculated at a 45% effective tax rate. Your result depends on your property and tax position.

In a client's words

“Cost Segregation is a proven IRS tax strategy that Scarpello Consulting captured for me. Scarpello has the expertise and experience to obtain every dollar of tax savings allowed without exposing me to unnecessary audit risk.”

Dave RamseyNational talk show host and New York Times best-selling author
A CPA firm partner and a Scarpello tax specialist in conversation at a conference table. Talk to the team877.410.5040

For CPA firms

Your client. Our engineers. Your name on the result.

We are not a CPA firm, and we don't compete for your clients. Think of us as your silent, back-end partner. We do all the work, and you get all the praise.

  • Every report ships with the supporting documentation the IRS requires
  • Audit defense at no cost to you or your client, whenever it's needed
  • A tax director a phone call away for depreciation questions all year
  • White papers whenever a new tax law changes what we deliver
Talk about a partnership

The team

Over 100 years of combined experience, from the Big Four to the job site.

  • Tom Scarpello

    Tom Scarpello

    Partner, Engineer

    Part industrial engineer, part building contractor, part CPA. Oversees every current and future endeavor.

  • Mike Shaw

    Mike Shaw

    Partner

    A former director of business development at a national CPA firm.

  • Richard Lurk

    Richard Lurk, JD, MPA

    Tax Director

    Studies the tax law year-round and fields the hardest questions, engaged or not.

  • Lee Schroeder

    Lee Schroeder

    Project Director

    With the firm since 2008, with a background in construction, finance and engineering.

  • Mike Pruss

    Mike Pruss

    Director of Business Development

    Works with some of the largest CPA firms and real estate companies.

FAQ

Still deciding? Here's what owners and CPAs ask.

Can't find your question? Call 877.410.5040, Monday to Friday, 8:30 AM to 5 PM.

Get in touch

Find out what your building could save.

Send a few details and the team will tell you whether a study makes sense. The consultation carries no obligation.

A question about the tax code?

Richard Lurk, JD, MPA · Tax Director

Email Richard

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