Cost Segregation Coordination
Assess whether a cost segregation study fits your property and work with a qualified study provider.
Online service across all 50 states
What this service is
A cost segregation study breaks a building's purchase price into components, flooring, fixtures, site work, specialty electrical, that can be depreciated over 5, 7, or 15 years instead of 27.5 or 39, moving deductions into earlier years. The study is performed by an engineering firm; our role is to decide whether it is worth ordering. We test the after-tax benefit against your hold period, passive loss limits, and future sale, coordinate with the provider, and then build the results into your depreciation schedules and returns.
Forms & documents involved
What we actually do
Screen the property
Estimate the potential benefit from purchase price, property type, and placed-in-service date.
Test whether you can use the deductions
Check passive loss limits, real estate professional status, and your expected tax bracket.
Model hold period and exit
Weigh the benefit against depreciation recapture when the property is sold or exchanged.
Coordinate the study provider
Supply documents to a qualified engineering firm and review its report for reasonableness.
Put the results on your return
Update depreciation schedules and file Form 3115 when catching up depreciation on a property already owned.
Estimate what a cost segregation study could be worth
Enter a few details about the property to see roughly how much depreciation a study could move into the first year - before you pay for one.
- Depreciable building basis
- $1,200,000
- Moved to shorter lives
- $300,000
- First-year depreciation without a study
- $43,636
- First-year depreciation with a study
- $332,727
- Estimated tax deferred at 37%
- $106,964
Estimate only. A CPA will confirm what applies to you.
Review my property with a CPAProperties that commonly benefit
- Apartment buildings and short-term rentals
- Office, medical office, and retail buildings
- Restaurants, hotels, and self-storage
- Warehouses, light manufacturing, and distribution
- Major renovations and tenant improvements
- Buildings bought in prior years that never had a study
Prices by scope
Compare the work included at each price. Your final scope and fee are confirmed in writing before work begins.
One-time analysis of whether a study is likely worth the cost before you commit.
- Single propertyBenefit estimate before you commit$420
- PortfolioUp to 5 properties ranked by benefit$880
CPA coordination fee; engineering study fee billed separately by the provider.
- Under $500KSingle-family or small residential rental$1,980
- $500K–$1MSmall multifamily, STR or small commercial$2,480
CPA coordination fee; engineering study fee billed separately by the provider.
- $1M–$2.5MMultifamily or small commercial$3,280
- $2.5M–$5MMid-size commercial or mixed-use$4,280
Priced individually based on property complexity and provider quote.
- $5M–$15MLarge multifamily or commercial$5,480
- Over $15MPortfolio, hotel or special-use propertyCustom quote
Incorporating study results into your filed depreciation schedule.
- Current-year propertyPlaced in service this year$460
- Look-back studyForm 3115 change in accounting method$980
The CPA coordination fee above covers screening, provider selection, and return integration. The engineering study itself is billed by the third-party provider and quoted once feasibility is confirmed.
What You Get
Property-level screening before committing to study cost
Review building cost, ownership, improvements, existing depreciation, and documentation to determine whether a specialist assessment is worth pursuing.
Hold-period, passive-loss, and disposition impact review
Look beyond an initial deduction to how losses may be used, how long the property may be held, and the implications of a later sale.
Coordination with qualified study providers and engineers
Organize the records and access needed by the independent study provider and resolve tax-related questions during the process.
Integration into depreciation schedules, returns, and future disposition planning
Reconcile study classifications with the asset ledger and identify the separately scoped return or accounting-method work required for implementation.
Alignment with entity structure, financing events, and owner-level tax usage
Consider which entity owns the assets, how cash and taxable income reach owners, and whether the modeled deductions can be used as expected.
Documentation standards designed for defensible filing support
Retain the study, source cost records, assumptions, and implementation schedules so the reported treatment has a clear evidence trail.
- Cost segregation viability screening summary
- Coordination checklist, timeline, and document request path
- Integration notes for filing execution and future disposition tracking
- Decision memo covering timing, benefit assumptions, and key watchpoints
When this service may fit
- You are evaluating a placed-in-service asset with meaningful basis and incomplete depreciation strategy
- You need to know whether passive-loss limitations will reduce the real value of the deduction
- You expect a refinance, partial disposition, or exit and want the recapture picture upfront
- You want a CPA-led decision framework before committing to a study provider
Often handled together
Clients who use this service often add these. Tick any to see the combined starting price.
How It Works
Fact pattern review and initial viability screening
Review ownership, cost records, depreciation, holding plans, and the tax position to assess whether a specialist study merits further consideration.
Study-provider coordination and documentation planning
Agree on the study requirements with a qualified provider, organize construction and acquisition records, and resolve documentation gaps.
Implementation, depreciation mapping, and filing alignment
Review the completed study with the provider, reconcile classifications with the tax asset schedule, and coordinate agreed return or accounting-method work.
Post-study handoff for tracking, compliance, and future disposition decisions
Deliver the updated schedules and implementation records, identifying what must be tracked for later improvements, refinancings, or dispositions.
Your Role
Provide complete closing and construction records, improvement invoices, prior depreciation schedules, and intended holding or sale plans.
Service Scope
OICPA coordinates the tax and accounting work; engineering analysis belongs to the qualified study provider. Study fees, amended filings, and method changes are separately scoped.
Start Cost Segregation Coordination online
Choose the closest scope and send your request online. We’ll confirm the final work and fee in writing before anything begins.
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