Cost segregation is an IRS-approved tax strategy that allows property owners to accelerate depreciation by identifying and reclassifying certain building components into shorter recovery periods. Cost segregation separates qualifying property components into 5‑, 7‑, or 15‑year assets, increasing depreciation deductions in earlier years. Couple with bonus depreciation, a Cost Segregation tax strategy can produce significant depreciation deductions even in the first year the property was placed in service.