Cost segregation services for real estate investors
Cost Seg Smart provides engineering-method cost segregation studies for real estate investors, priced per property from a published fee schedule that starts at $495. Order one property or a whole portfolio: 2 properties take 5% off, 3 to 4 properties take 10%, and 5 or more properties take 15%. Most residential studies are delivered in 1–2 business days.
A cost segregation service splits a property's purchase price into the components the tax code depreciates over 5, 7 and 15 years instead of 27.5 or 39, so more of it can be deducted early. Total depreciation does not change; the study moves it forward. Our studies are priced per property from $495, and a portfolio takes up to 15% off.
What the service includes
An estimate before you pay
Your exact fee shows on the order form, and a free estimate models the first-year deduction for the property, so you can see whether a study is worth it before you pay.
Component identification and classification
Each building component is assigned its MACRS class: 5-year personal property (appliances, flooring, cabinets, furnishings), 15-year land improvements (driveways, fencing, landscaping) and the 27.5- or 39-year building, following IRS Publication 5653 and Rev. Proc. 87-56.
Cost allocation to every component
Your purchase price, less land, is allocated across the components from current construction cost data and reconciled back to your basis to the dollar.
A CPA-ready report
A PDF with the component schedule, recovery periods, land methodology and depreciation tables, plus an Excel fixed-asset file your CPA can import. Quality-checked before delivery.
Form 3115 for earlier years
When a prior-year lookback applies, your report includes the §481(a) catch-up schedule and supporting workpapers, and your CPA prepares, signs, and files Form 3115 with your return. Preparing and signing the form itself is available as a separately engaged, separately priced add-on; filing it, and deciding whether a method change is appropriate, stays with your CPA either way.
Audit support
Lifetime audit support, included: written answers to your CPA's technical questions about our methodology, for the life of the study — no expiry. It does not include IRS representation.
See a sample rental report, how we work in the methodology, and what audit support covers.
Order several properties at once
Most investors own more than one property. One engagement covers them all: different types, states and entities are ordinary. Each property gets its own study at its published fee, and the discount applies to the total.
Ten or more can also ask for a portfolio proposal. Properties bought in earlier years are included: the study carries the Form 3115 catch-up workpapers. How a portfolio engagement runs, what to send and a discount estimator: portfolio cost segregation.
Published prices
One flat fee per property, set by purchase price. You see it before you pay.
| Purchase price | Single-family, condo, STR | Duplex, triplex, fourplex |
|---|---|---|
| <$300K | $495 | $995 |
| $300K–$700K | $895 | $1,295 |
| $700K–$1M | $995 | $1,495 |
| $1M–$1.5M | $1,295 | $1,795 |
| $1.5M–$2M | $1,595 | $2,195 |
| $2M–$3M | $1,995 | $2,595 |
Higher values, apartments of 5+ units, commercial property and add-ons are on the full pricing page.
How this differs from the traditional engineering-firm model
Traditional cost segregation firms built their process around large commercial buildings: a call, a proposal, a scheduled site visit. That still fits a large or unusual property. For rentals and most small commercial buildings, the same classification work can be priced in advance and done from documents.
| Cost Seg Smart | Traditional engineering firm | |
|---|---|---|
| Price | Published per property, before you talk to anyone | Quoted per engagement, usually after a call |
| Estimate | Per-property estimate before you pay | Often a proposal or feasibility letter first |
| Turnaround | Most residential studies in 1–2 business days | Often scheduled around a site visit |
| Site visit | Remote by default for most residential; in-person or video visits where they change the answer | Commonly part of every engagement |
| Several properties | One engagement, 15% off at 5 or more | Usually scoped and priced as a project |
Comparing providers? Our guide to choosing a cost segregation company and the side-by-side comparisons.
Property types we serve
When a study is not worth it
- Land is most of the value. The depreciable basis, and the deduction with it, is small next to the fee.
- You will sell soon. Depreciation on reclassified personal property is recaptured as ordinary income under §1245 on a sale, unless a §1031 exchange defers it.
- You cannot use the loss for years. Long-term rental losses are generally passive; without passive income, the allowance or real estate professional status, the deduction waits.
- Little taxable income. A deduction at a low bracket saves little tax.
The full decision for rentals: is cost segregation worth it for a rental property?
Cost segregation services FAQ
How much do cost segregation services cost?
Cost Seg Smart publishes a fee per property, set by property type and purchase price. Single-family rentals, condos and short-term rentals start at $495; duplexes to fourplexes start at $995; standard commercial property starts at $995. The order form shows the exact fee before you pay.
Is there a discount for several properties?
Yes. On one engagement, 2 properties take 5% off, 3 to 4 properties take 10%, and 5 or more properties take 15% off the published fee for each study. Properties can be different types, in different states and held by different entities. Ten or more can also ask for a portfolio proposal.
How long does a cost segregation study take?
Most residential studies are delivered in 1–2 business days once your documents are in. Portfolios take one to two business days per property, scheduled with you. Studies with an on-site observation take about a week.
Do you need to visit the property?
Every study is priced as a remote study, and when a walkthrough would improve it, we do it with you on a video call at no charge. For commercial and 5+ unit property, an in-person site visit is available as an add-on for $895, travel included, throughout the contiguous United States and Washington, DC, for buildings up to 20,000 sq ft. Residential rentals (1–4 units): an in-person visit by an independent field data collector, $595 throughout the contiguous United States and Washington, DC, travel included. Larger buildings, Alaska and Hawaii are by quote.
Which properties are worth a study?
Rental and business property with a meaningful building value: short-term rentals, single-family and small multifamily rentals, apartments and commercial buildings. A study moves depreciation forward rather than adding to it, so it pays most when you can use the deduction this year, for example against passive income, as a real estate professional, or on a short-term rental where you materially participate.
I bought my properties years ago. Is it too late?
No. When a prior-year lookback applies, your report includes the §481(a) catch-up schedule and supporting workpapers, and your CPA prepares, signs, and files Form 3115 with your return. Preparing and signing the form itself is available as a separately engaged, separately priced add-on; filing it, and deciding whether a method change is appropriate, stays with your CPA either way.
What do I need to send?
The address, the closing statement (or purchase price and closing date), the date each property was first available to rent, and any interior photos. Invoices help for improvements you made. We pull county and assessor records ourselves.
Does my CPA have to be involved?
Your CPA files the return; the study is what they file from. CPA coordination included. We answer your accountant's technical questions in writing, provide supporting schedules, and get on a call or meeting with your CPA when either of you asks.
Not tax advice. Confirm your basis, land allocation, placed-in-service date and passive activity position with your tax professional.
Several properties? Tell us about the portfolio or email hello@costsegsmart.com, and we reply with a written quote.