07/20/2026
Valid Study, Wrong Move
A cost segregation study can be valid and still be the wrong move.
That sounds strange until you remember what the study actually does. It accelerates depreciation. It does not automatically create usable tax savings, solve passive activity limits, erase recapture, fix a short hold period, or make a property strategy stronger.
In Part 3 of our cost segregation series, Janet walks through the uncomfortable middle ground: the study may be technically sound, the numbers may look impressive, and the investor may still be buying the wrong tool for the job.
The question is not simply, “How much depreciation can this create?”
The better question is, “What decision changes if this deduction is created, and does that change justify the cost, timing, risk, and documentation burden?”
That is where tax strategy begins to separate itself from tax product sales.