Recover up to 10% of your purchase pricein year 1 tax savings

Cost Segregation is an IRS-approved tax planning strategy that can provide companies or individuals who have acquired, constructed, or renovated real estate assets with increased cash flow by accelerating the deductions from depreciation and reducing income taxes.

A cost segregation study is an engineering-based analysis of real estate assets to identify the costs of components that can be depreciated more quickly for tax purposes. Typically, real estate assets are depreciated over 27.5 or 39 years for federal and state income tax purposes. However, the tax code allows certain assets to be depreciated over 5, 7, or 15 years. These assets are also eligible for first year bonus depreciation. As much as 20% to 50% of the cost of a real estate property may be eligible. By identifying and accelerating depreciation deductions, cost segregation decreases federal and state income taxes and increases cash flow to the owner of the real estate asset. You can learn more about how cost segregation works here.

Savings vary based on property type, value, and your tax situation. Typically, our clients see first-year tax savings up to 10% of their purchase price. Our clients also typically see first-year tax savings of 5x the cost of their study. Every situation varies, but applied correctly cost seg can be a really lucrative and efficient strategy.

We are happy to provide you a personalized estimate of your benefits and costs and based on your specific situation, or feel free to use our free estimate tool.

Most income-producing properties qualify including: short term rentals, apartments, condos, office buildings, retail centers, warehouses, manufacturing facilities, hotels, and medical facilities. Properties must be used for business or income-producing purposes, not be a personal residence.

Our typical turnaround time is ~3 weeks, depending on the complexity and size of your property. We'll provide a detailed timeline before we get started. For urgent situations, we offer expedited processing for an additional fee.

We also offer Do-It-Yourself (DIY) options, powered by our sister brand Cost Seg EZ, for simpler properties where the study can be completed much faster.

You can learn more about our different offerings here.

It depends on your property and your desired level of service. We are proud to offer a several options so you can choose.

Do-It-Yourself (DIY) studies, powered by our sister brand Cost Seg EZ, can be generated instantly for $595 per property. This option is available for residential properties (excluding condos) with a cost basis < $1 million and minimal post-acquisition improvements.

Engineer-Reviewed studies takes DIY and adds a detailed review by our experienced engineering team to ensure maximum benefits and accuracy for $895 per property. This option is available for all residential properties (including condos) with a cost basis < $1 million and post-acquisition improvements up to $100,000.

Fully Engineered studies are our core business. This is for larger residential properties and all commercial properties. The pricing depends on the size and scope of the project, but is usually starts around $2,500 for a residential property. Get a personalized proposal here.

You can learn more about our different offerings here.

Cost segregation studies do not increase your audit risk when done properly. Cost segregation is an IRS-approved strategy, and we've never had a study rejected by the IRS. Our studies follow the IRS guidelines and we lead the industry with engineering-based best practices. A poor quality or inaccurate study is what can increase the risk of an audit or cause issues during an audit.

Yes! You can still capture the benefit of cost segregation via a “look back” analysis. This process involves filing a Form 3115 with your next tax return and allows you to “catch up” on any depreciation deductions you missed by not doing the cost segregation study in year 1. This is very common.

Yes, we provide lifetime audit protection. If the IRS questions any aspect of our cost segregation study, we'll handle the defense at no additional cost to you for Fully Engineered studies. Our studies follow all current guidelines and we've never had a study rejected by the IRS.