A cost segregation study costs about $495 to $15,000 or more in 2026. The price depends on which tier of the market you buy from. Automated software reports start around $495. Traditional engineering firms commonly quote $3,000 to $15,000 or more. Engineer-reviewed specialist studies sit between the two.
R.E. Cost Seg's Rapid Report starts at $950. Its fully engineered studies start at $2,320 for residential property and $2,730 for commercial property.
Disclosure: R.E. Cost Seg sells cost segregation studies. Competitor prices come from providers' published pricing, checked on 08 October 2026.
The tiers don't sell the same product. This guide compares what each one delivers and when a higher fee buys more engineering.
Key takeaways
- Automated cost segregation reports start at about $495. Traditional engineering firms commonly quote $3,000 to $15,000 or more.
- R.E. Cost Seg's Rapid Report starts at $950. Its Fully Engineered Study starts at $2,320 (residential) or $2,730 (commercial).
- The IRS lists 13 principal elements of a quality cost segregation study. None of them is a fee level.
- IRS examiners must check each study's fee arrangement and closely scrutinize contingency-fee studies.
- Qualified property acquired after January 19, 2025, is generally eligible for permanent 100% bonus depreciation, subject to elections and state rules.
Cost segregation pricing: the three tiers
| Tier | Starting price | What you're buying |
|---|---|---|
| Automated / software | From about $495 | A report the software generates from the property details you enter and standardized cost data, often within one business day |
| Engineer-reviewed specialist studies | From about $950 | A study an engineer reviews or performs, from a questionnaire-based report to a measured study with a site visit |
| Traditional engineering firms | About $3,000 to $15,000+ | An engineer-led study, often with an on-site inspection, priced largely on project size |
Automated and specialist prices are published starting prices. The traditional range reflects typical quotes. Larger and multi-building properties cost more in every tier.
Providers define "engineered" differently. Some automated platforms describe their reports as engineered, so ask who actually reviews your property.
What you're paying for in each tier
Automated providers price the software. You or your tax preparer enter the property details. The platform then generates the report from standardized cost data. For a simple, well-documented rental, that can be enough. Check that the tool supports your property type and basis before you buy.
Specialist firms price engineering on your property. R.E. Cost Seg's Rapid Report starts from a detailed property questionnaire. An engineer then reviews the modeled result. The Fully Engineered Study adds a site visit and component-level measurements. An engineer also reviews your construction or renovation cost documents.
Traditional firms price on-site engineering time. The IRS Cost Segregation Audit Technique Guide (Pub. 5653) notes that many firms charge "a fee based primarily on the size of the project." That model suits complex assets such as manufacturing plants, hospitals, and large portfolios. For a standard rental, extra engineering time may not change the classifications much.
What you get above the $495 tier
Many automated reports now include audit support, so the deliverable alone isn't the difference. The difference is how much engineering sits behind the numbers. The ATG itself says a study by a construction engineer is generally more reliable than one prepared without engineering or construction experience.
- From $950, an engineer reviews the result. The Rapid Report starts from your questionnaire, like an automated report. An engineer reviews the modeled classifications before delivery. It covers residential properties with up to 4 units and under 3,500 sq ft per unit. Depreciable basis must be under $1.2 million, with capital improvements under $80,000.
- From $2,320, an engineer measures the property. The Fully Engineered Study includes a 30- to 60-minute virtual inspection. In-person visits cost extra. The engineer measures quantities and assigns a unit cost to each building component. There's no cap on property value.
- Audit support has written limits. Both R.E. Cost Seg studies include a written response to IRS questions on methodology, asset classifications, and conclusions. It doesn't cover representation before the IRS or expert testimony.
Is a $495 cost segregation study worth it?
It can be, for a simple residential rental with good records, if you're confident in the details you enter. Before you buy, ask the provider:
- Does an engineer review the report before delivery?
- If the IRS questions a classification, who responds, and does the fee cover it?
- Which property types, basis amounts, or improvement costs does the tool exclude?
What does R.E. Cost Seg charge?
R.E. Cost Seg's Rapid Report starts at $950. The Fully Engineered Study starts at $2,320 for residential and $2,730 for commercial property. Your proposal quotes the fee before the study begins.
| Rapid Report | Fully Engineered Study | |
|---|---|---|
| Starting price | $950 | $2,320+ residential / $2,730+ commercial |
| Eligible properties | Residential, up to 4 units, under 3,500 sq ft per unit | All residential and commercial |
| Basis and improvement limits | Depreciable basis under $1.2M; capital improvements under $80,000 | No maximum |
| Site visit | None (questionnaire-based) | 30 to 60 min virtual; in-person for an added fee |
| Method | Modeling approach with engineering review | Quantity measurements and unit costs for all building components |
| Audit support | Written response included | Written response included |
| Standard delivery | 5 business days | 15 to 20 business days |
Delivery timelines start once we receive all requested information and documents. Peak tax season can extend them, and rush delivery may be available for an added fee. Our pre-study checklist lists what to send. The final fee depends on square footage, property type, and complexity. Compare both options on our cost segregation services page.
Does a $15,000 study buy more?
The ATG lists 13 principal elements of a quality study. They include the preparer's expertise, the methodology, documentation, legal analysis, and identification of § 1245 property. None of them is a fee level. Our guide to a quality cost segregation study walks through each element.
A higher fee doesn't by itself produce a larger reclassification or a stronger audit position. Methodology and documentation drive both. Complex assets can justify more engineering time, such as a hospital's specialized mechanical systems or a multi-building campus. A quote far above the market should come with a property-specific reason.
Fixed fees vs contingency fees
The ATG tells examiners to determine the fee arrangement behind each study. It warns that contingency fees "create the incentive to maximize the amount of costs attributed to § 1245 property." Examiners "should closely scrutinize" these studies, and the ATG refers them to Circular 230.
Circular 230 § 10.27 generally bars tax practitioners from charging contingent fees for matters before the IRS. It allows a few narrow exceptions.
Many firms instead charge a fee based on project size. Ask for the quote in writing before the study starts.
Worked example: study fee vs first-year savings
Take a $2 million apartment building with $500,000 allocated to land. That leaves a depreciable basis of $1,500,000. Assume a cost segregation study reclassifies about 26.7% of that basis, or $400,000, into 5-year and 15-year property.
Qualified property acquired after January 19, 2025, is generally eligible for permanent 100% bonus depreciation. Unless the owner elects a lower rate or opts out, the full $400,000 is deductible in year one for federal purposes.
Now assume the owner has real estate professional status. Also assume the deduction offsets income taxed at 35%. The first-year federal tax saving is $400,000 × 35% = $140,000.
| Study fee scenario | Fee | First-year saving ÷ fee | Extra fee vs $2,320 |
|---|---|---|---|
| R.E. Cost Seg residential starting price | $2,320 | $140,000 ÷ $2,320 ≈ 60x | — |
| Traditional firm, low end | $3,000 | $140,000 ÷ $3,000 ≈ 47x | $680 |
| Traditional firm, high end | $15,000 | $140,000 ÷ $15,000 ≈ 9.3x | $12,680 |
These multiples apply to this example only. They aren't typical or guaranteed results. A building this size may also be quoted above the $2,320 starting price.
Results depend on depreciable basis, land allocation, reclassification results, tax rates, bonus depreciation eligibility, your ability to use the deductions, and the study fee. Check four limits before you count the savings:
- Loss limits. Without real estate professional status or another exception, passive activity loss rules can suspend the deduction.
- Tax brackets. A $400,000 deduction may span more than one bracket, so your blended rate may differ from 35%.
- State rules. Some states don't follow federal bonus depreciation. Check your state's bonus depreciation state conformity.
- Sale. Accelerated deductions can trigger depreciation recapture when you sell.
How to compare cost segregation quotes
- Get quotes from more than one tier for the same property. Compare what each includes, not just the price.
- Ask who reviews your specific property, and at what stage.
- Ask what audit support covers and whether the fee includes it.
- Check eligibility limits on property type, basis, and capital improvements.
- Request a redacted sample report.
- Avoid contingency fees.
- For property placed in service in an earlier year, ask whether the study supports a change in accounting method on Form 3115.
- Run the cost segregation ROI on your own numbers with your CPA.
If the numbers look thin, review the cost segregation limitations before you buy any study.
Frequently asked questions
How much does a cost segregation study cost?
In 2026, about $495 to $15,000 or more. Automated reports start around $495. Engineer-reviewed specialist studies start around $950. Traditional engineering firms commonly quote $3,000 to $15,000 or more. Size and complexity raise the price in every tier.
Will a cheaper study hold up in an IRS audit?
Audit outcomes depend on methodology and documentation, not on price. Contingency fees, however, draw closer IRS scrutiny. R.E. Cost Seg reports more than 20,000 completed studies as of October 2026. Fewer than 0.1% have faced an audit, and R.E. Cost Seg has defended every one. Both study types include written audit support. Read how an IRS audit of a cost segregation study works.
How much does R.E. Cost Seg charge?
The Rapid Report starts at $950. The Fully Engineered Study starts at $2,320 for residential and $2,730 for commercial property. Larger and more complex properties cost more. Your free proposal shows the fee before you commit.
Want to see what a study would return on your property? Get a free proposal with a fee quote and estimated depreciation benefits.
