Frequently Asked Questions

The optimal time to perform a cost segregation study is within the tax year that the building is purchased, constructed, or substantially renovated. This timing allows you to maximize first-year depreciation benefits without needing to file additional forms with the IRS. When you conduct the study in the same year as acquisition or placement in service, you simply use the accelerated depreciation schedule from the start, avoiding the need for Form 3115 to change accounting methods.

However, this doesn't mean you've missed the opportunity if you've owned the property for several years. Look-back studies can capture missed depreciation from prior years through a Section 481(a) adjustment, bringing all that accumulated benefit into the current tax year. The key is completing the study before filing your tax return for the year you want to claim the benefits. For specific tax deadlines, we maintain strict cut-off dates to ensure quality delivery.

‍

We pride ourselves on offering affordable cost segregation studies tailored to every budget and property type. Our self-directed Rapid Report, designed for smaller residential properties up to 4 units with a depreciable basis under $1,200,000 and capital improvements under $50,000, is available starting at $950.

For properties that don't meet these criteria and/or require more detailed analysis, our Fully Engineered Study starts at $2,320 for residential properties and $2,730+ for commercial properties. The final fee varies based on square footage, property type, and complexity of the analysis required. Rush service pricing for pending tax deadlines may apply and are subject to capacity availability.

Both services include full IRS audit protection and are performed by qualified engineers following IRS guidelines. To understand exactly what a cost segregation study on your investment property would cost, we provide free proposals that include fee quotes along with estimated depreciation benefits, allowing you to evaluate the return on investment before committing to the study.

Compare our cost segregation study services.

Any type of income-producing property placed into service after 1986 qualifies for cost segregation, making this tax strategy widely applicable across the real estate spectrum. We frequently work with both residential properties, including single-family rentals, multi-family buildings, and short-term rentals like Airbnb properties, as well as commercial projects ranging from office buildings and retail centers to industrial facilities and medical offices.

The key requirement is that the property must be used for business or investment purposes rather than as a personal residence. This includes properties you actively manage as rentals, those held for investment appreciation, and buildings used in your trade or business.

Properties acquired through various means including purchases, 1031 exchanges, inheritances, or new construction all qualify, as long as they meet the income-producing requirement and were placed in service after 1986.