This is a step-by-step guide in preparing a tax return, with a filled-in Form 3115, where a cost segregation study is involved, including depreciation adjustments.
You sold a stock or rental property with a massive gain. You deferred/avoided tax on the complete capital gain by investing said gains in an Opportunity Fund. Then you decide to use the basis from the original investments as a down payment on an income property and conduct a cost segregation study. This equates to a $300,000 deduction on your tax return while avoiding tax on the capital gains!