Buyer's guide

Cost segregation companies, compared.

The 30-second answer

Cost segregation companies fall into two camps: traditional engineering firms and automated providers. Engineering firms (KBKG, CSSI, Engineered Tax Services, Capstan, Bedford, Madison SPECS, Maven, Cost Segregation Guys) run multi-week, often site-visit studies that fit $5M+ commercial and unusual properties. Automated providers (Cost Seg Smart) deliver the same IRS-defensible methodology in under an hour from $495, which fits residential and small commercial. All reputable firms use the same core methodology; what differs is price, turnaround, and labor model. Pick by fit. See the full buyer's guide.

Disclosure: Cost Seg Smart operates this page and is one of the firms listed. We describe firms by best-fit segment rather than ranking them; confirm current pricing and scope directly with each vendor.

The major cost segregation companies

Company Model Best fit
Cost Seg SmartAutomated, remote, from $495, under 1 hourResidential, STR, small MF, small commercial
KBKGEngineering firm, on-site, multi-week$5M+ commercial, hospitality, REIT
CSSINational rep network, ~6 weeks, since 2003Commercial; local-rep relationship
Engineered Tax ServicesFull-service specialty tax firmCommercial; bundles R&D / §179D
Cost Segregation AuthorityEngineering firm, since 2006Commercial; bundles energy incentives
MavenIn-house engineer + CPA, condensed or on-siteOwners wanting a named engineer + CPA
Cost Segregation GuysFlat-fee engineering, accountant-coordinatedCommercial; flat-fee preference
Madison SPECSSpecialty engineering firmHigh-end commercial / industrial

How to pick a cost segregation company

Every reputable firm uses construction-cost-data component pricing and MACRS classification per Rev. Proc. 87-56, documented to the IRS Audit Techniques Guide. That is table stakes, not a differentiator. Decide on fit: match the firm's price and turnaround to your property. A $5,000 engineering fee is trivial on a $5M building and ruinous on a $400K rental. For the deeper firm-by-firm breakdown, see the best cost segregation companies guide; for individual head-to-heads, the comparison hub.

Frequently asked

Who are the major cost segregation companies?

The established engineering firms include KBKG, CSSI, Engineered Tax Services, Capstan, Bedford, Madison SPECS, Maven, and Cost Segregation Guys. Automated providers include Cost Seg Smart. All use the same core methodology (construction-cost data and MACRS classification per Rev. Proc. 87-56); they differ on price, turnaround, and labor model.

How do I choose a cost segregation company?

By fit, not by ranking. Match the firm's model to your property: large engineering firms for $5M+ commercial and unusual properties where on-site judgment matters; automated providers for residential and small commercial where speed and study cost decide the ROI. Confirm the firm uses Rev. Proc. 87-56 classification documented to IRS Pub 5653, that the fee is proportionate to the Year-1 benefit, and that audit support is included.

Are all cost segregation companies the same?

Methodologically, reputable firms are similar: the same construction-cost data and MACRS framework. What differs is the labor model (on-site engineering vs. automated remote), turnaround (weeks vs. under an hour), and price (several thousand dollars vs. from $495). Those differences are what make one firm a better fit than another for a given property.

Which cost segregation company is cheapest?

Automated providers are the lowest cost for residential and small commercial; Cost Seg Smart starts at $495 versus $2,000 to $10,000+ at traditional engineering firms. For very large or unusual commercial property, an engineering firm's higher fee can be justified by on-site judgment. Cheapest is not the goal; proportionate to the benefit is.

Can I trust online rankings of cost segregation companies?

Read them for the firm descriptions, but treat the ordering with care, most rankings are published by firms that compete in the space (this page included, which is why we describe firms by best-fit segment rather than ranking them). The most reliable decision criterion is fit.

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