Engineering-Based Cost Segregation Study for CPA Firms

Cost segregation study fees vary based on property size, complexity, and type. Entry properties ($300K-$1M building basis) typically cost $3,000-$12,000, medium properties ($1M-$3M) run $10,000-$20,000, large properties ($3M-$10M) cost $15,000-$30,000, and very large properties ($10M+) range from $30,000-$60,000 or more. The average first-year tax savings is $171,243, with typical ROI ratios of 10-25:1, meaning for every dollar spent on the study, clients receive $10-$25 in tax benefits. We provide free preliminary analyses to determine if a study is financially worthwhile for your client's specific property.

You'll receive a comprehensive engineering report with detailed property analysis, narrative explaining classification methodology and legal reasoning, supporting photos and diagrams, organized fixed asset schedules separating property into 5-year, 7-year, 15-year, and 27.5/39-year categories, complete depreciation schedules showing annual deductions, cost reconciliation workpapers tying all numbers to the purchase price, and Form 3115 preparation for lookback studies. All documentation is formatted specifically for CPA use and ready for direct tax return integration. Implementation support is included to help you effectively apply the findings.

Our Partnership Program allows CPAs to refer clients for cost segregation studies and earn percentage-based commissions with no upfront costs to join. You can expand your service offerings instantly by introducing this in-demand tax strategy to your clients, strengthening retention and adding value without operational burden. Over 125 CPA firms and tax advisors trust our partnership program. You become a trusted advisor by connecting clients with our ASCSP-certified engineering team, while we handle the technical analysis, reporting, and audit defense. Partners benefit from our tech-forward process, virtual tours that keep costs affordable, and fast 2-4 week delivery timelines.

Yes, lookback studies can be performed on properties placed in service up to 15 years ago. Using IRS Form 3115, your clients can claim all missed depreciation deductions in one year without amending prior tax returns. The lookback study process and deliverables are identical to current-year studies, including full engineering analysis, comprehensive reporting, and lifetime audit defense. Pricing is comparable to current-year studies. We can reconstruct necessary information using industry databases and historical cost data if original documentation is unavailable, ensuring your clients don't miss out on significant tax benefits from past acquisitions.

Cost segregation applies to any income-producing real estate with depreciable basis, including single-family homes, multifamily properties, apartment complexes, hotels, office buildings, medical facilities, industrial properties, self-storage, retail centers, restaurants, gas stations, auto-related facilities, assisted living facilities, daycares, agricultural properties, and recreational facilities. Properties must have a building basis of at least $300,000 (excluding land) for studies to be cost-effective, though properties under this threshold can be carefully analyzed on a case-by-case basis. Both purchased and newly constructed properties qualify, as do properties that have undergone significant renovations.

Standard studies are completed in 2-4 weeks, significantly faster than the industry average of 4-8 weeks. Our proprietary technology and streamlined engineering processes enable this rapid turnaround without sacrificing accuracy or compliance. For time-sensitive tax deadlines, we offer rush service that can deliver completed studies in as little as one week, with transparent premium pricing. Virtual property tours typically take 30-45 minutes and lead to faster completion compared to on-site visits. The final timeline depends on property complexity, documentation availability, and whether rush service is selected.

Every study includes comprehensive IRS audit defense at no additional charge for the entire duration of property ownership—not just a limited period. If an IRS audit occurs related to the cost segregation study, our ASCSP-certified specialists defend the report, provide all supporting documents, answer field inquiries, and handle all audit-related communications at no cost to you or your client. Our AuditDefense guarantee includes a potential study cost refund if an audit occurs and the study has a material issue. Studies have a low-risk audit profile due to our engineering-based methodology and strict adherence to IRS guidelines.

Yes, comprehensive CPA coordination and implementation support is included with every study at no additional charge. After study completion, we work directly with you to review the report, discuss depreciation schedule integration, and prepare you to implement findings in current tax returns or through Form 3115 for lookback studies. This coordination phase typically takes 2-3 days and ensures seamless integration of cost segregation benefits into your client's tax strategy. Our team remains available post-study to provide any necessary support if you or your client require additional help implementing findings effectively throughout the property ownership period.