The One Big Beautiful Bill Act restored permanent 100% bonus depreciation for eligible property acquired after January 19, 2025, and meeting the applicable placed-in-service requirements, according to IRS guidance. That makes a cost segregation study more valuable than ever, because it can convert a large share of your building's basis into a first-year deduction. Timing and bundling can also lower what you pay for the study itself. This article covers what a study costs, how demand shifts through the year, how multi-property discounts work, and how to weigh the return.

What a Cost Segregation Study Costs

Pricing depends on property type, size, complexity, and provider. At R.E. Cost Seg, a Rapid Report starts at $950. A Fully Engineered Study starts at $2,320 for residential properties and $2,730 for commercial properties. You can compare both options and check current pricing before you order.

A Rapid Report suits single-family and small residential owners who can supply their own property details. A Fully Engineered Study fits all property types, and it is the better choice for higher-value or complex assets. Larger or more complex properties cost more because they contain more building systems and a larger depreciable basis to analyze.

Here are two illustrative examples. A $500,000 single-family rental might run about $2,500 for an engineering-based study. A $3 million commercial property could run about $8,000.

Does a more expensive study find bigger deductions?

Not necessarily. The IRS evaluates studies on methodology and documentation quality, not price. A rigorous study captures every qualifying component and holds up under review, whether the site visit is virtual or on-site. Focus on quality and defensibility rather than the size of the invoice.

How Demand Shifts Through the Year

Cost segregation demand follows a seasonal rhythm that can affect provider capacity and turnaround times. Pricing and promotions do not follow a guaranteed calendar, so the practical goal is to begin early enough to gather documents, coordinate with your CPA, and secure the delivery timeline required for filing.

• Early in the year, demand often rises ahead of spring filing deadlines.
• After filing season, some providers may have more scheduling flexibility.
• Mid-year is a practical planning window for extended returns and year-end tax strategy.
• Year-end can bring tighter capacity as investors complete acquisitions and prepare upcoming returns.

Is it too late to order a study for this tax year?

What matters for bonus depreciation is whether the property satisfies the applicable acquisition and placed-in-service requirements, not the day your study is finished. If the property was placed in service by December 31, the deduction may be claimed on a timely filed return, including extensions, when the other requirements are met. A look-back study may allow eligible taxpayers to claim previously unrecognized depreciation through a Section 481(a) adjustment, generally without amending prior returns. The appropriate filing treatment, including whether Form 3115 is required, should be confirmed with the taxpayer's CPA.

How Multi-Property Discounts Work

If you own several properties, bundling them into one order may lower your per-study cost. R.E. Cost Seg offers discounted per-study rates for qualifying portfolio orders. Ask your Account Manager or Cost Segregation Specialist about the current threshold and terms.

Here is an illustrative example. Suppose a single study on a $1 million rental costs $4,500, and a portfolio rate brings each study down to $3,200. Ordering five at once saves $6,500 across the portfolio. The engineering work per property is similar, so firms pass along the efficiency.

Who tends to benefit most:

• Portfolio investors with several rentals
• Syndicators acquiring multiple assets each year
• Investors who bought in prior years and never ordered a study, who are often strong look-back candidates

Can I add properties later and still get the bulk rate?

Policies vary, so ask upfront. At R.E. Cost Seg, your Account Manager or Cost Segregation Specialist can advise on bundling as your portfolio grows.

How to Weigh Your Study's Return

The return on a study depends on your property, your tax bracket, and whether you can use the deduction this year. Returns are often several multiples of the study cost. Our cost segregation ROI breakdown walks through the details.

Here is a worked example that assumes a 37% federal tax bracket. You pay $5,000 for a study on a $2 million apartment building. The study reclassifies $500,000 into shorter-life 5, 7, and 15-year categories. Under permanent 100% bonus depreciation, you may be able to deduct that $500,000 in year one if the property and taxpayer satisfy the applicable requirements. At a 37% rate, that represents about $185,000 in potential federal tax savings, or 37 times the study cost. The study fee may also be deductible depending on the taxpayer's circumstances and the applicable treatment, which can further improve the economics.

One condition decides whether that math is real: the taxpayer must be able to use the loss. Under the passive activity loss rules, real estate professional status or the short-term rental rules may help a taxpayer treat rental losses as nonpassive, but neither automatically allows those losses to offset other income. Material participation, basis, at-risk limits, excess business loss rules, and the taxpayer's specific circumstances also matter. Otherwise, losses may be suspended until the taxpayer has passive income or disposes of the activity. Confirm usability with your CPA before counting on the deduction.

Plan for depreciation recapture too. When you sell, accelerated deductions can be recaptured, so factor your hold period into the decision.

The timing lesson is simple. If your property meets the applicable requirements and you can use the deduction, ordering early can simplify coordination with your CPA and reduce deadline pressure. If prior depreciation was not recognized, a look-back study may allow an eligible taxpayer to claim it through the appropriate filing procedure.

Key Takeaways

• R.E. Cost Seg pricing starts at $950 for a Rapid Report, $2,320 for a residential Fully Engineered Study, and $2,730 for a commercial one.
• Demand and turnaround times shift through the year. Plan early to secure the delivery timeline required for return preparation rather than assuming pricing or promotions follow a fixed calendar.
• Portfolio orders qualify for discounted per-study rates. Confirm the threshold with your provider.
• Permanent 100% bonus depreciation applies to eligible property acquired after January 19, 2025 and meeting the applicable placed-in-service requirements. A study may convert a share of basis into a first-year deduction if the taxpayer can use the loss.
• Bonus depreciation depends on the applicable acquisition and placed-in-service rules, not the study's completion date. A look-back study may allow eligible taxpayers to claim previously unrecognized depreciation through the appropriate filing treatment.

See how much your property or portfolio could save. Book a call with R.E. Cost Seg for a pricing estimate.

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