In this episode of the Major League Real Estate Podcast, Nathan and Matt sit down with Edward Griffith of Hall CPA to demystify cost segregation for large CRE operators, fund managers, and syndicators—and how to turn engineered studies into real cash flow and tax advantages.

Edward shares how his engineering background and 15+ years in property analysis and cost segregation led him to run the cost seg department at a large national firm before joining Hall to build out its in-house team. He explains what a cost segregation study actually is, how it accelerates depreciation using shorter asset lives, and where bonus depreciation and QIP still create meaningful opportunities.

Edward breaks down:

- How cost segregation works in plain English—turning “one building over 39 years” into multiple asset classes you can depreciate much faster

- Why bonus depreciation still matters in today’s landscape and how it applies differently to short-term rentals, industrial assets, and other property types

- Key rules and timelines around binding contracts, placed-in-service dates, and renovations so you don’t miss bonus or accidentally double count assets

- How the component election and qualified improvement property (QIP) can fit into your overall tax strategy

- The step-by-step cost seg process for new construction vs. acquisitions—from plans and takeoffs to site inspections and the final report your CPA actually uses

- Why on-site visits and engineering-driven reports matter more under the updated IRS Audit Technique Guide

- What makes a strong cost seg candidate: site improvements, parking, and why apartments, offices, RV parks, and golf courses often outperform “plain vanilla” warehouses

- How to think about land value allocations using appraisals and property tax records instead of arbitrary rules of thumb

- Edward closes by emphasizing that cost segregation isn’t just a tax trick—it’s a strategic tool. Done right, it helps sponsors generate losses for investors, sharpen their capital-raising story (“What losses do I get in year one?”), and stay on the right side of the IRS with thoroughly documented, engineering-backed studies.

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