How much does a cost segregation study cost?

The site puts a typical study in the $4,000-11,000 range. Fees are fixed and based on the size and complexity of the property rather than a share of the savings found, which the firm says the IRS discourages because it gives the provider a reason to push the limits of acceptable reallocation.

What happens if a study finds no savings?

Madison SPECS runs an up-front, no-cost feasibility analysis before any study and estimates the savings a full study would be expected to produce. If the firm does not think there is enough value in the work, it says it will tell the owner before any money is spent.

Can a study be done on a building bought in an earlier year?

Yes. Missed depreciation from past purchases, construction, expansions, and renovations can be recovered later. The catch-up depreciation is taken in one year by filing Form 3115, a change in accounting method, rather than by amending returns already filed. The firm says a study is usually worthwhile up to five years after the purchase or renovation.

When is the best time to order a cost segregation study?

Before the initial depreciation schedule is filed on the asset, which usually means immediately after buying a building or once a construction project is complete and placed in service.

Cost segregation

Madison SPECS

Madison SPECS is a cost segregation firm headquartered in Lakewood, New Jersey and affiliated with the Madison family of companies. Its engineers and CPAs reclassify building components into shorter depreciable lives, separating non-structural personal property and land improvements from the 27.5-year or 39-year real property schedule so owners can take deductions sooner.

An engagement starts with a no-cost feasibility analysis that estimates the savings a full study would produce, and the firm says it will tell an owner up front when there is not enough value in the work. Studies are fixed-fee and priced per property; the firm does not charge a percentage of the savings found, because the IRS discourages contingency pricing. Studies can also be run on property placed in service in earlier years, with catch-up depreciation taken in a single year by filing Form 3115 instead of amending prior returns.

The site reports 41,861 studies over 23 years, including 5,232 in 2025, with 22 in-house engineers and a team of more than 60 cost segregation specialists spread across six branches. Studies have been performed in all 50 states, on hotel, industrial, multifamily, nursing home and senior living, office, retail, and specialty property, and the firm estimates roughly $275,000 of tax write-off per $1 million of reclassified assets.

Typical fees are published as $4,000 to $11,000 per study, set by the size and complexity of the property. Confirm the quote and turnaround for a specific building, and ask what happens in an IRS inquiry: the site says it stands behind its studies and claims a clean record, but does not set out audit-defense terms.

Best for

Owners of an investment or business property worth at least $1,000,000, or one that has had a renovation of at least $750,000, who plan to hold it at least three years. Not for owners who want contingency pricing tied to the savings found.

What they do

Engineering-based cost segregation studies
No-cost feasibility analysis before a study
Look-back studies on property placed in service in prior years
Form 3115 catch-up depreciation support
Bonus depreciation allocation under current tax law
Studies across hotel, industrial, multifamily, office, retail, and senior living property
Support for CPAs and referral partners

Details

Attribute	Value
Team size	51-200 employees
Other offices	Baltimore, MD, Boca Raton, FL, Beachwood, OH, Dallas, TX, Houston, TX, Valley Village, CA, Miami, FL
How they charge	Fixed fee per property; the site puts a typical study in the $4,000-11,000 range and rules out contingency pricing.
Method	Engineering-based

What stands out

Reports 41,861 cost segregation studies completed over 23 years.
Reports 5,232 studies performed in 2025 alone.
Employs 22 in-house engineers within a team of more than 60 cost segregation specialists across six branches.
Estimates about $275,000 of tax write-off for every $1 million of reclassified assets.
Has performed studies in all 50 states and on every major commercial property type.

Common questions

How much does a cost segregation study cost?: The site puts a typical study in the $4,000-11,000 range. Fees are fixed and based on the size and complexity of the property rather than a share of the savings found, which the firm says the IRS discourages because it gives the provider a reason to push the limits of acceptable reallocation.
What happens if a study finds no savings?: Madison SPECS runs an up-front, no-cost feasibility analysis before any study and estimates the savings a full study would be expected to produce. If the firm does not think there is enough value in the work, it says it will tell the owner before any money is spent.
Can a study be done on a building bought in an earlier year?: Yes. Missed depreciation from past purchases, construction, expansions, and renovations can be recovered later. The catch-up depreciation is taken in one year by filing Form 3115, a change in accounting method, rather than by amending returns already filed. The firm says a study is usually worthwhile up to five years after the purchase or renovation.
When is the best time to order a cost segregation study?: Before the initial depreciation schedule is filed on the asset, which usually means immediately after buying a building or once a construction project is complete and placed in service.