Frequently Asked Questions

What is a cost segregation study?

Normally, the entirety of a property’s value is depreciated over 27.5 years (residential) or 39 years (commercial). A cost segregation study is an IRS-approved process that reclassifies your property’s components into shorter depreciation categories (5, 7, or 15 years), allowing you to accelerate tax deductions. This can save thousands in taxes and improve cash flow.

Now, with bonus depreciation back to 100% in 2025, the entire value of the reclassified assets can be claimed as a tax deduction in year one.

How much of my property can I expect to be reclassified?

Typically, 15–30% of the property value can be reclassified into 5, 7, or 15 year categories. Meaning a $100,000 property could get you a $30,000 tax deduction with bonus depreciation.

These are industry averages across many studies, not guarantees for any individual property.

Is a virtual cost segregation study as valid as an in-person study?

Yes. The IRS does not require physical site visits for a cost segregation study to be valid.

For residential and small investment properties, we complete fully virtual, IRS-compliant studies that routinely produce equivalent depreciation results to in-person studies, without the added cost

Is a cost segregation study worth it for my property?

If you have a residential rental property or a short-term rental (like Airbnb, VRBO), you may be wondering if the study is worth it.

Even small investment properties can benefit by accelerating depreciation on assets like flooring, cabinetry, and electrical systems. This reduces your taxable income in the first few years of ownership, increasing your cash flow for reinvestment.

Our service makes it affordable and accessible for any property under $5 million.

How is your service different from traditional firms?

• Flat, upfront pricing: $2,200 for the 2026 tax year (filed with your 2027 return)
• Virtual and remote: No site visits needed
• Engineering-reviewed: Every study is reviewed by experienced cost segregation engineers

Is this IRS-compliant?

Yes. Our methodology follows the IRS Audit Technique Guide (ATG) standards and is reviewed by experienced engineers to ensure audit defensibility.

Who prepares and reviews the study?

Our studies are prepared by a team of senior cost segregation engineers. Each report is reviewed internally to ensure accuracy and compliance.

Do I need to schedule a call or virtual walkthrough?

No. We operate entirely remotely using documents you already have:

• Property photos
• Construction drawings, plans, or appraisals
• Cost databases and engineering expertise

This keeps our pricing low while maintaining quality and validity.

What types of properties do you analyze?

Our studies are designed for:

• Single-family rentals
• Small multifamily buildings
• Short-term rentals / vacation homes
• Other investment properties valued under $5 million

We do not handle large commercial or specialty industrial properties.

What happens if I am audited?

Our reports are engineered to be IRS defensible. We provide detailed cost breakdowns and documentation so your CPA or tax advisor can respond confidently.

Can my CPA use this study?

Absolutely. Our reports are CPA-ready and formatted for easy integration into your tax filings.