Cost Segregation Service Area

Cost Segregation Services Across Ohio

Property owners and developers throughout Ohio frequently evaluate whether a Cost Segregation analysis is appropriate when commercial real estate is constructed, acquired, renovated, or expanded.


Industrial facilities, multifamily developments, office campuses, retail centers, and mixed-use properties across Ohio often contain building components that may qualify for shorter depreciation recovery periods under applicable federal tax guidance.



Since 2004, RCG has completed more than 25,000 R&D tax credit studies and identified over $750 million in tax savings. RCG applies the same documentation-focused and compliance-driven methodology to Cost Segregation engagements performed throughout Ohio.

Ohio Markets Served

RCG performs Cost Segregation analyses across Ohio’s primary commercial and industrial markets, including:

What a Cost Segregation Study Evaluates

A Cost Segregation Study is a structured engineering and tax analysis designed to determine whether certain building components may qualify for:

5-year recovery periods

7-year recovery periods

15-year recovery periods

Instead of default 27.5-year (residential rental property) or 39-year (commercial real property) treatment.

RCG’s methodology generally includes:

1. Construction Documentation Review

Contractor payment applications

Construction invoices

Change orders

Depreciation schedules

2. Onsite Engineering Inspection

A physical inspection to evaluate building systems, design, and operational use. Photographic documentation of qualifying components is incorporated into the final report.

3. Engineering-Based Cost Allocation

Blueprint review when available

Quantity take-offs and cost estimation

Reconciliation of total project costs by tax life

Allocation of applicable soft costs

Preparation of documentation aligned with IRS Cost Segregation Audit Technique Guide standards

Property Types Commonly Reviewed in Ohio

Property Type Components Commonly Evaluated Why Technical Review Is Important
Industrial Facilities Reinforced slabs, production systems Production infrastructure requires engineering classification
Warehouses & Distribution Dock systems, site work Storage properties often include qualifying components
Multifamily Developments Interior systems, parking areas Residential properties may contain shorter-life assets Interior systems, parking areas Complex facilities must be analyzed individually
Office Buildings Tenant improvements, HVAC systems Interior build-outs require structured allocation
Retail Centers Storefronts, lighting, site improvements Exterior improvements may qualify for shorter recovery periods

Each property must be evaluated individually based on documentation and physical characteristics.

Ohio Depreciation and State-Level Considerations

Ohio income tax calculations begin with federal adjusted gross income but may include state-level modifications. Certain federal bonus depreciation deductions under IRC §168(k) may require adjustment under Ohio law.


Ohio’s Commercial Activity Tax (CAT) is measured by taxable gross receipts rather than net income. Accelerated depreciation typically affects income tax liability rather than CAT liability.



Implementation decisions should be coordinated with a qualified CPA or tax advisor.

RCG’s Compliance-Focused Methodology

Engineering-Based Evaluation

Onsite inspections and technical quantity take-offs support accurate asset classification.


Documentation and Reconciliation Standards

A defensible Cost Segregation analysis requires proper classification, reconciliation to actual project costs, and alignment with IRS guidance.


Technical Tax Experience

Since 2004, RCG has completed more than 25,000 R&D tax credit studies and identified over $750 million in tax savings.

Frequently Asked Questions – Cost Segregation Ohio

  • What is a cost segregation study?

    A cost segregation study is a technical engineering and tax analysis identifying building components potentially eligible for shorter depreciation recovery periods.

  • Does cost segregation apply to industrial properties in Ohio?

    Industrial facilities frequently contain structural and mechanical systems that warrant engineering-based classification review.

  • Can multifamily properties qualify?

    Multifamily developments often include interior systems and exterior improvements that require structured evaluation.

  • Is cost segregation only for new construction?

    Previously placed-in-service properties may, depending on documentation and circumstances, be evaluated for classification adjustments.

  • Does Ohio follow federal bonus depreciation rules?

    Ohio begins with federal adjusted gross income but may require state-level adjustments to certain federal depreciation deductions.

Contact RCG

Property owners and developers across Ohio who would like to evaluate whether a Cost Segregation analysis is appropriate may contact RCG to review project details.

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