Frequently Asked Questions

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.

It depends on the type of study. A Rapid Report usually takes about 5–10 business days once you've paid and completed the online questionnaire. A fully engineered study typically takes about 15–20 business days (roughly 3–4 weeks) once you've submitted all required documents and completed the site inspection. If you need results sooner, a rush option with a 5-business-day turnaround may be available, depending on capacity during busier times of the year.

Yes, for most building purchases. Bonus depreciation under IRC Section 168(k) applies to qualifying property with a recovery period of 20 years or less. Items already identified separately, such as furniture or equipment bought on their own, can qualify without a study, but most of a building's short-life value is built into its components. A cost seg study identifies and reclassifies those components into shorter recovery periods and gives your CPA the engineering-based documentation to support the accelerated deductions.

No, not if you want a defensible cost segregation study. A study requires supported asset classification, construction-cost analysis, tax knowledge, and documentation that can withstand review. Property owners can help gather records, but the analysis should be completed by qualified cost segregation specialists.

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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It depends on the study type.

Rapid Reports don't include an inspection. They're prepared from the property questionnaire and documents you submit.

Fully Engineered Studies include a 30–60 minute virtual inspection, scheduled based on your property's needs. It's conducted over a video call, with someone who has access to the property using a smartphone to guide our team through it. In-person site visits are available for an additional fee depending on location.

If you choose an in-person visit, a trained inspector captures detailed visual documentation, primarily through photographs, of the property’s condition, components, and improvements for our engineering team. The inspector will need full access to all readily accessible interior and exterior areas, excluding the roof and any areas that are not easily accessible. We recommend having someone from your team present to help facilitate access if needed. The length of the visit will vary depending on the size and complexity of the property.

This information usually comes from your CPA or accounting records, not from tax forms themselves. Most tax preparers maintain a depreciation schedule or fixed asset report (often generated from their accounting or tax software) that shows the property’s original basis and depreciation taken to date.

If you don’t have access to this schedule, your CPA can typically pull it directly from their system or accounting software. This information is important so the cost segregation study correctly accounts for any depreciation already taken and avoids double-counting.

According to the Cost Segregation Audit Technique Guide, the IRS requires that we "reconcile the cost basis of property in a study to the cost basis contained in the taxpayer's books and records" and verify how any prior accelerated depreciation affects your remaining basis​​​​​​​.

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