· COST SEGREGATION · ACCELERATED DEPRECIATION · REAL ESTATE TAX
Most property owners leave years of tax deductions sitting in their walls.
Cost segregation studies reclassify building components into shorter depreciation lives. 5, 7, and 15 years instead of 39. For most commercial property owners, the tax savings far exceed the cost of the study.
How It Works
Cost segregation is not a loophole. It is the tax code working the way it is supposed to.
When you purchase or construct a commercial building, the IRS allows you to depreciate different components at different rates. Structural components depreciate over 39 years. But personal property and land improvements within that building can qualify for 5, 7, or 15-year depreciation. A cost segregation study identifies and documents those components so you can claim the accelerated depreciation you are entitled to. The result is significantly larger deductions in the early years of ownership, improving cash flow when it matters most.
What We Do
What a cost segregation study covers
A properly conducted cost segregation study is a detailed engineering and tax analysis. Not a spreadsheet estimate. Here is what Archer Lewis delivers.
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Engineering-Based Analysis
A detailed review of construction costs, architectural drawings, and site visits to identify qualifying components. Not a rule-of-thumb estimate.
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Component Reclassification
Every qualifying item reclassified into the correct depreciation category. 5-year, 7-year, or 15-year personal property and land improvements.
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IRS-Compliant Documentation
A written report that satisfies IRS audit requirements so the deductions hold up if your return is ever examined.
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Bonus Depreciation Coordination
Cost segregation combined with bonus depreciation can produce immediate first-year deductions on qualifying property.
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Look-Back Studies
Own a building you have had for years without a cost segregation study? A look-back study captures missed deductions without amending prior returns.
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New Construction and Acquisitions
Studies conducted at the point of construction or purchase, or any time after, for commercial, industrial, and mixed-use properties.
Meet Your Advisors
The specialists behind your cost segregation study.
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Dwight Littlefield
Dwight R. Littlefield is a highly accomplished Certified Public Accountant (CPA) with over three decades of expertise in tax planning, business transactions, and compliance. His distinguished career began in 1993 after graduating with a Bachelor's and Master's degree in Accountancy from Brigham Young University, where he focused on financial and managerial accounting as well as individual and business taxation. Mr. Littlefield's professional journey includes a notable tenure at PriceWaterhouseCoopers, where he served as a director in their Washington, D.C. national tax office. Throughout his career, he has cultivated a reputation for excellence in handling complex financial transactions and tax issues for a diverse range of clients, including small, mid-sized, and large businesses. His specialized assignments as a practicing CPA encompass a wide array of significant contributions: - Authoring and co-authoring several IRS private letter rulings. - Facilitating mergers and acquisitions, involving deal structuring, tax attribute arbitration, and comprehensive due diligence for sellers and buyers. - Delivering strategic tax planning and IRS compliance related to various tax accounting methods. - Providing litigation support, including expert witness testimony for various business and personal disputes. - Conducting buyer and seller due diligence for business transactions across diverse industries. Mr. Littlefield has successfully assisted in the sale, acquisition, and family succession planning of many of business entities, with sales prices ranging from tens of thousands to tens of millions of dollars. His expertise in financial structuring, and succession planning has made him a trusted advisor to clients navigating the complexities of business transactions. With a keen understanding of federal and state tax compliance for a variety of entities, including individuals, partnerships, LLCs, S-corporations, and consolidated corporations. Mr. Littlefield continues to deliver impactful solutions that cater to the unique needs of his clients, ensuring their financial strategies are both efficient and compliant. Through his extensive experience and commitment to excellence, Dwight R. Littlefield has established himself as a leader in the field of accounting and taxation, providing invaluable insights and support to businesses of all sizes.
Dwight Littlefield
Dwight R. Littlefield is a highly accomplished Certified Public Accountant (CPA) with over three decades of expertise in tax planning, business transactions, and compliance. His distinguished career began in 1993 after graduating with a Bachelor's and Master's degree in Accountancy from Brigham Young University, where he focused on financial and managerial accounting as well as individual and business taxation. Mr. Littlefield's professional journey includes a notable tenure at PriceWaterhouseCoopers, where he served as a director in their Washington, D.C. national tax office. Throughout his career, he has cultivated a reputation for excellence in handling complex financial transactions and tax issues for a diverse range of clients, including small, mid-sized, and large businesses. His specialized assignments as a practicing CPA encompass a wide array of significant contributions: - Authoring and co-authoring several IRS private letter rulings. - Facilitating mergers and acquisitions, involving deal structuring, tax attribute arbitration, and comprehensive due diligence for sellers and buyers. - Delivering strategic tax planning and IRS compliance related to various tax accounting methods. - Providing litigation support, including expert witness testimony for various business and personal disputes. - Conducting buyer and seller due diligence for business transactions across diverse industries. Mr. Littlefield has successfully assisted in the sale, acquisition, and family succession planning of many of business entities, with sales prices ranging from tens of thousands to tens of millions of dollars. His expertise in financial structuring, and succession planning has made him a trusted advisor to clients navigating the complexities of business transactions. With a keen understanding of federal and state tax compliance for a variety of entities, including individuals, partnerships, LLCs, S-corporations, and consolidated corporations. Mr. Littlefield continues to deliver impactful solutions that cater to the unique needs of his clients, ensuring their financial strategies are both efficient and compliant. Through his extensive experience and commitment to excellence, Dwight R. Littlefield has established himself as a leader in the field of accounting and taxation, providing invaluable insights and support to businesses of all sizes.
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Robert Crumley
Senior Tax Manager
Having assisted clients in obtaining R&D tax credits over the past 30 years, Bob’s decades of experience can assist in defining and realizing these and other tax credits and accelerated deductions (R&D, Energy, Cost Segregation and Pandemic Relief assistance) for your organization. Bob joined LFC in 2021 as the leader of our Special Tax Services group focusing on credits and incentives, notably R&D, Energy and Cost Segregation credits and incentives. His primary responsibilities include identifying and qualifying companies with the potential to enjoy these and other tax incentives. Bob brings over 30 years of accounting and business experience to our firm, with more than 25 years dedicated to Research & Development tax credit consulting across a wide array of industries: aerospace, pharmaceutical, medical implement, oil and gas, transportation, manufacturing, software and construction. He, along with Dwight, began his career with PwC (then Coopers & Lybrand) and has held positions with other R&D consulting and tax advisory firms, and has earned a MSA in taxation and BBA in accounting from Texas Tech University. Bob also has Six Sigma Green Belt certification. Not strictly business, Bob enjoys golf, tennis, coaching youth sports and a newfound activity of hiking areas of the Southwest and Pacific Northwest. Photographing all of it along the way, usually with his children Bobby and Vivian at his side.
Robert Crumley
Senior Tax Manager
Having assisted clients in obtaining R&D tax credits over the past 30 years, Bob’s decades of experience can assist in defining and realizing these and other tax credits and accelerated deductions (R&D, Energy, Cost Segregation and Pandemic Relief assistance) for your organization. Bob joined LFC in 2021 as the leader of our Special Tax Services group focusing on credits and incentives, notably R&D, Energy and Cost Segregation credits and incentives. His primary responsibilities include identifying and qualifying companies with the potential to enjoy these and other tax incentives. Bob brings over 30 years of accounting and business experience to our firm, with more than 25 years dedicated to Research & Development tax credit consulting across a wide array of industries: aerospace, pharmaceutical, medical implement, oil and gas, transportation, manufacturing, software and construction. He, along with Dwight, began his career with PwC (then Coopers & Lybrand) and has held positions with other R&D consulting and tax advisory firms, and has earned a MSA in taxation and BBA in accounting from Texas Tech University. Bob also has Six Sigma Green Belt certification. Not strictly business, Bob enjoys golf, tennis, coaching youth sports and a newfound activity of hiking areas of the Southwest and Pacific Northwest. Photographing all of it along the way, usually with his children Bobby and Vivian at his side.
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Adam Reed
Adam is a 10+ year experienced Certified Public Accountant with a Master's degree in Taxation. Adam is known for building trusting business relationships and is passionate about helping all business owners and individuals of various size meet their accounting and tax goals! Adam works with closely held businesses and their owners. He has a wide variety of experience in high-net-worth individuals, business startups, construction development and real estate companies, manufacturing/service companies, retail stores and private equity investment companies heavily invested in the real estate. His area of expertise includes complex tax planning and compliance especially in partnership allocations and structuring. He also has excessive knowledge regarding cost segregation studies. Prior to joining Archer Lewis as a principal for WN Advisory, an Archer Lewis Firm Adam was the managing partner of Williams and Nulle, PLLC. During his time managing Williams & Nulle, PLLC he guided the overall strategic direction including the merger with Archer Lewis in 2025 and growing, managing and overseeing daily activities of the firm. Adam has firsthand knowledge of running a local business in the Pacific Northwest. Adam obtained his master's degree in taxation from the University of Washington and graduated Cum Laude with a Bachelor of Arts in Business Administration from Seattle University. In his free time, Adam enjoys skiing, boating, biking, golf, yard work, and spending time with his family.
Adam Reed
Adam is a 10+ year experienced Certified Public Accountant with a Master's degree in Taxation. Adam is known for building trusting business relationships and is passionate about helping all business owners and individuals of various size meet their accounting and tax goals! Adam works with closely held businesses and their owners. He has a wide variety of experience in high-net-worth individuals, business startups, construction development and real estate companies, manufacturing/service companies, retail stores and private equity investment companies heavily invested in the real estate. His area of expertise includes complex tax planning and compliance especially in partnership allocations and structuring. He also has excessive knowledge regarding cost segregation studies. Prior to joining Archer Lewis as a principal for WN Advisory, an Archer Lewis Firm Adam was the managing partner of Williams and Nulle, PLLC. During his time managing Williams & Nulle, PLLC he guided the overall strategic direction including the merger with Archer Lewis in 2025 and growing, managing and overseeing daily activities of the firm. Adam has firsthand knowledge of running a local business in the Pacific Northwest. Adam obtained his master's degree in taxation from the University of Washington and graduated Cum Laude with a Bachelor of Arts in Business Administration from Seattle University. In his free time, Adam enjoys skiing, boating, biking, golf, yard work, and spending time with his family.
ServicesIndustriesJarrard, Nowell & Russell, LLC is a separate entity from Archer Lewis, LLC. Jarrard, Nowell & Russell, LLC provide attest and assurance services. Jarrard, Nowell & Russell, LLC create independent, objective assessments to give stakeholders confidence in financial reporting. Services include non profit audits, private company audits, employee benefit plan audits, reviews, compilations, agreed upon procedures, and prepared financials. These services are performed under professional standards established by the AICPA and require a high level of independence.
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Mark Reed
Mark thrives on being able to work with you in the plotting/planning process to help you achieve your individual tax and business tax goals. Specializing in Business Taxes, Financial & Tax Planning, Strategic Management Consulting and Accounting, Mark has experience in developing cost accounting systems and has extensive experience in tax, audit, and accounting services with various size companies in a wide variety of industries. Mark earned a Bachelor of Arts in Business Administration, (major - Accounting) in 1993 from Seattle University where he graduated Magna Cum Lade with the highest GPA of all graduating accounting students that year. Mark went on to receive a Master of Science in Taxation in 2004 from Golden Gate University, where he graduated top of his class.
Mark Reed
Mark thrives on being able to work with you in the plotting/planning process to help you achieve your individual tax and business tax goals. Specializing in Business Taxes, Financial & Tax Planning, Strategic Management Consulting and Accounting, Mark has experience in developing cost accounting systems and has extensive experience in tax, audit, and accounting services with various size companies in a wide variety of industries. Mark earned a Bachelor of Arts in Business Administration, (major - Accounting) in 1993 from Seattle University where he graduated Magna Cum Lade with the highest GPA of all graduating accounting students that year. Mark went on to receive a Master of Science in Taxation in 2004 from Golden Gate University, where he graduated top of his class.
ServicesIndustriesJarrard, Nowell & Russell, LLC is a separate entity from Archer Lewis, LLC. Jarrard, Nowell & Russell, LLC provide attest and assurance services. Jarrard, Nowell & Russell, LLC create independent, objective assessments to give stakeholders confidence in financial reporting. Services include non profit audits, private company audits, employee benefit plan audits, reviews, compilations, agreed upon procedures, and prepared financials. These services are performed under professional standards established by the AICPA and require a high level of independence.
The savings window is largest in the first year.
Bonus depreciation has been phasing down annually. The combination of cost segregation and bonus depreciation is most powerful when applied quickly after acquisition or construction. Archer Lewis conducts studies on the timeline that maximizes your benefit, not whenever it is convenient.
Find Out If You Qualify
Common Questions
What property owners ask us about cost segregation.
Most commercial and investment properties qualify, including office buildings, retail centers, warehouses, apartment complexes, hotels, restaurants, and industrial facilities. The study is most valuable for properties with a cost basis above $1 million, though smaller properties can still produce meaningful savings depending on the component mix.
It depends on the property type, cost basis, and your tax situation. It is common to reclassify 20 to 40 percent of a building's value into shorter depreciation lives.We model the expected benefit before you commit to the study.
Yes. A look-back study captures all the accelerated depreciation you were entitled to from the placed-in-service date, taken as a catch-up deduction in the current year. No amended returns required. This is one of the most consistently overlooked opportunities for long-term property owners.
Accelerated depreciation does create recapture exposure at sale. The reclassified amounts are subject to Section 1250 recapture at a maximum 25 percent rate. However, the time value of money almost always favors taking the accelerated deductions now. If you do a 1031 exchange at sale, recapture can be deferred. We model both sides before you decide.
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