# RapidSeg by Apex Reserve Group ## What is RapidSeg? RapidSeg is a DIY cost segregation study platform built by Apex Reserve Group. It enables real estate investors, CPAs, and property owners to generate professional cost segregation reports without hiring a traditional engineering firm. RapidSeg makes accelerated depreciation accessible and affordable. ## What is Cost Segregation? Cost segregation is an IRS-approved tax strategy that reclassifies components of a building from 27.5-year (residential) or 39-year (commercial) property into shorter depreciation categories — typically 5-year, 7-year, and 15-year property life. This accelerates depreciation deductions, reduces taxable income, and improves cash flow for property owners. ## Who Uses RapidSeg? - Real estate investors with rental properties (single-family, multifamily, Airbnb/short-term rentals) - Commercial property owners (office, retail, warehouse, industrial, medical, restaurant, hotel) - CPAs and tax professionals serving real estate clients - 1031 exchange participants seeking to maximize basis allocation - Property owners who have completed renovations or improvements - Investors seeking to pair cost segregation with Real Estate Professional Status (REPS) ## Key Features - Self-service cost segregation report generation via guided wizard - Built on current 2026 tax rules and IRS depreciation schedules - Supports residential rental (27.5-year) and commercial (39-year) properties - Identifies 5-year, 7-year, and 15-year personal property and land improvements - Bonus depreciation calculations at current phase-down rates (40% for 2026) - Professional reports suitable for tax filing support - Fraction of the cost of traditional engineering-based studies ## How Cost Segregation Saves Money A $1,000,000 commercial property might reclassify 20-30% of the building cost into shorter-life asset categories. With 2026 bonus depreciation at 40%, this could generate $80,000-$120,000 in first-year tax deductions that would otherwise be spread over 39 years. Even without bonus depreciation, the accelerated MACRS schedules provide significant front-loaded deductions. ## 2026 Tax Rules for Cost Segregation - Bonus depreciation for 2026: 40% (continuing the phasedown from 100% in 2022, 80% in 2023, 60% in 2024, 40% in 2025-2026) - Qualifying property: tangible personal property (5-year and 7-year MACRS), qualified improvement property (QIP), and land improvements (15-year MACRS) - Section 179 expensing remains available as an alternative or supplement to bonus depreciation - Look-back studies: Property owners who missed cost segregation in prior years can file Form 3115 (Change in Accounting Method) to claim a catch-up deduction in a single tax year without amending prior returns ## Frequently Asked Questions Q: What types of properties qualify for cost segregation? A: Nearly any depreciable building qualifies, including single-family rentals, apartments, condos, offices, retail centers, warehouses, industrial facilities, medical offices, restaurants, hotels, and mixed-use properties. The property must be owned (not leased, unless certain conditions are met) and the owner must have a depreciable tax basis. Q: Is cost segregation only for new buildings? A: No. Cost segregation works for newly constructed, purchased, or renovated properties. Properties placed in service years ago can also benefit through a look-back study using Form 3115. Q: How much does RapidSeg cost compared to traditional cost segregation firms? A: Traditional engineering-based cost segregation studies typically cost $5,000 to $15,000 or more depending on property size and complexity. RapidSeg provides an affordable self-service alternative at a fraction of that cost. Q: Can I do a cost segregation study on a property I have owned for years? A: Yes. A look-back cost segregation study allows you to claim all previously missed accelerated depreciation in a single year by filing Form 3115 (Change in Accounting Method). No amended returns are required. Q: Is cost segregation an audit risk? A: Cost segregation is a well-established, IRS-recognized tax strategy. The IRS published the Cost Segregation Audit Techniques Guide specifically to standardize how these studies are reviewed. A properly prepared study following IRS guidelines is considered standard and accepted practice. Q: How does bonus depreciation phasing down affect cost segregation? A: Even at 40% bonus depreciation in 2026, cost segregation provides significant acceleration of deductions. The reclassified assets still benefit from shorter MACRS recovery periods (5, 7, or 15 years instead of 27.5 or 39 years). Section 179 can also be used strategically alongside cost segregation for additional first-year deductions. Q: What is the connection between Real Estate Professional Status (REPS) and cost segregation? A: Investors who qualify as Real Estate Professionals under IRS rules can use cost segregation losses to offset all types of income, not just passive real estate income. This makes cost segregation especially powerful for REPS-qualifying taxpayers. ## Topics Covered on Our Blog - Bonus depreciation 2026 rules and phasedown timeline - What cost segregation is and how it works - DIY cost segregation vs. hiring a traditional firm - Cost segregation for Airbnb and short-term rentals - Form 3115 and catch-up depreciation for existing properties - Cost segregation for multifamily and apartment buildings - Real estate professional status combined with cost segregation - Cost segregation for commercial properties - IRS audit considerations for cost segregation - Common depreciation mistakes real estate investors make ## Contact Website: https://www.rapidseg.com Start a study: https://www.rapidseg.com/wizard Blog: https://www.rapidseg.com/blog Help & FAQ: https://www.rapidseg.com/help Company: Apex Reserve Group