Frequently Asked Questions

Yes, but you don't need to limit your search to local firms. Cost segregation is a specialized engineering discipline, and the best firms work with investors nationwide. R.E. Cost Seg serves clients in all 50 states. Property inspections can be conducted through virtual site visits, so geography is rarely a limiting factor. What matters most is the firm's engineering expertise, IRS compliance track record, and turnaround time, not proximity.

Absolutely. A look-back study lets you claim all missed accelerated depreciation on properties you've owned for years, even a decade or more. Your CPA files Form 3115 (Change in Accounting Method) to catch up on the missed deductions in a single tax year. No amended returns required.

A full cost segregation report runs 30–100+ pages. It includes an asset-by-asset breakdown of every reclassified component, depreciation schedules by recovery period, the engineering methodology, and IRS compliance documentation. Your CPA uses this report to file your depreciation deductions.

Most studies take 2–4 weeks from document submission to final report delivery. Timeline depends on property complexity, how quickly you submit documents, and whether a physical or virtual site visit is needed.

Yes. Bonus depreciation under IRC Section 168(k) applies to property with a recovery period of 20 years or less. A cost seg study identifies and reclassifies building components into those shorter recovery periods. Without the study, your CPA has no engineering basis to claim accelerated deductions.

You can try, but the IRS expects your study to follow engineering-based methodology from the Audit Technique Guide. A DIY approach lacks the engineering credentials, component-level detail, and documentation required to survive an audit. For most investors, hiring a qualified firm is the safest and most cost-effective path.

Our Form 3115 Preparation service is built to do more than “fill out a form.” We handle the work that typically drives the time, risk, and back-and-forth when a method change is needed after cost segregation.

Here’s what’s included:

• A fully prepared Form 3115 that is consistent with the method change and the cost segregation results
• Completion of the Section 481(a) adjustment calculation, which is your cumulative “catch-up” depreciation amount between the prior depreciation already taken and the results of the cost segregation study
• Includes detailed supporting statements/attachments that explain the accounting method change being made, which explains in detail the comparison to the prior depreciation already taken, all done in a CPA/IRS-ready format
• CPA-ready support — we are available for any questions that your CPA may have regarding the Form 3115 itself, but please note that we cannot assist with the tax filing process

Many real estate-specific CPAs can complete Form 3115, but the specialized, time-consuming part is calculating and documenting the Section 481(a) adjustment correctly and packaging the method change so it’s consistent, defensible, and easy to file. That’s the value this service is designed to deliver.

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Rapid Report works best for straightforward residential properties. For multi‑unit buildings, it’s intended specifically for duplexes, triplexes, and 4‑plexes where the units are identical or substantially similar across the building. 

Rapid is not intended for multifamily properties with different layouts, mixed uses, or varying placed‑in‑service dates. Rapid also does not support splitting one property into separate reports (for example, a main house and an ADU). 

If your property includes units with different layouts, placed-in-service dates, or configurations, you’ll need to purchase a separate report for each unique unit, or consider upgrading to a Fully Engineered Study.

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