Cost Seg Smart delivers cost segregation studies for residential and commercial properties across all 50 states. Our reports follow the IRS Cost Segregation Audit Techniques Guide and include all 13 principal elements required for IRS compliance.
Cost Seg Smart was built by data scientists and real estate investors who reviewed dozens of traditional cost segregation reports and kept finding the same problems: crude land modeling, construction costs disconnected from market data, and generic templates applied identically regardless of property type or location.
We built a calibrated engineering engine grounded in RSMeans cost databases, county assessor records, and IRS-recognized classification methodology. Every component is modeled individually and passes automated quality control before delivery — the same rigor as a traditional firm, delivered in under an hour at a fraction of the cost.
Every study is built on an engineering-based methodology. We use RSMeans 2024 cost databases to estimate component-level construction costs, then classify each component under the Modified Accelerated Cost Recovery System (MACRS) per Rev. Proc. 87-56 asset class lives.
Our analysis draws from the same data sources as traditional engineering firms: county assessor records, satellite and street-level imagery, verified cost databases, and building permit data. Every data point is cross-referenced against public records.
Traditional firms charge $5,000–$15,000 in part because of on-site inspections. Our remote methodology uses the same underlying data—county assessor records, construction cost databases, and property characteristics—validated against publicly available records.
Every report includes a line-item breakdown of building components: structural, electrical, plumbing, HVAC, interior finishes, site improvements, and personal property. Each component is assigned to a MACRS recovery period (5, 7, 15, 27.5, or 39 years).
Reports are designed for direct use by tax professionals. Depreciation schedules, MACRS class allocations, and supporting methodology documentation are included—ready for Form 4562 and, if applicable, Form 3115 (change of accounting method for lookback studies).
Cost segregation has been available for decades, but traditional firms price most investors out. We built a different delivery model.
| Cost Seg Smart | Traditional Firms | |
|---|---|---|
| Delivery time | Under 1 hour | 4–8 weeks |
| Cost (residential) | Starting at $795 | $5,000–$15,000 |
| Cost databases | RSMeans 2024 | RSMeans or Marshall & Swift |
| Methodology | Engineering-based | Engineering-based |
| IRS ATG compliance | All 13 principal elements | All 13 principal elements |
| CPA filing support | Depreciation schedules included | Depreciation schedules included |
This is not a DIY tool or calculator. We deliver a finished, professional cost segregation study—a 30–40 page PDF with full supporting documentation. You receive the same deliverable a traditional firm produces, at a fraction of the cost and turnaround time.
Every study is a professionally formatted PDF report, typically 30–40 pages, ready to hand to your CPA or attach to your tax filing.
We produce studies for residential, multifamily, and commercial properties. Each property type uses a tailored component library and classification methodology.
Mixed-use properties are also supported. If you are unsure whether your property qualifies, contact us at [email protected].
Our studies are structured around the IRS Cost Segregation Audit Techniques Guide (ATG), which outlines the 13 principal elements the IRS looks for when evaluating a cost segregation study. Every report addresses each element.
Asset classification follows Rev. Proc. 87-56, which defines the MACRS recovery periods for tangible personal property, land improvements, and building structural components. Our methodology documentation is designed to support your position in the event of an IRS examination.
See your property's depreciation breakdown in 60 seconds—no signup required.
Preview Your Tax Savings