Cost segregation
R.E. Cost Seg
R.E. Cost Seg performs cost segregation studies for residential and commercial investment property owners. A study is an engineering-based analysis that breaks a property into components and assigns each to the shortest allowable depreciation life, moving parts of the building into 5-, 7- and 15-year categories rather than depreciating the whole structure over 27.5 or 39 years.
The firm sells three levels. A software study starts at $500 for eligible single family homes with straightforward facts. The Rapid Report starts at $950 and is for residential properties under 3,500 sq ft per unit and up to 4 units, with a depreciable basis of $1,200,000 or less and renovation costs of $50,000 or less; it is built from a self-directed property questionnaire with no site visit, and the company says it typically takes about 5-10 business days. The Fully Engineered Study starts at $2,320 for residential and $2,730 for commercial, includes a virtual site visit by a site visit specialist (in-person available for an additional fee), detailed quantity measurements and cost per unit of measurement for building components, asset classification aligned with IRS Rev. Proc. 87-56 and a detailed depreciation schedule; it typically takes 15-20 business days and is guaranteed within 4 weeks of the inspection. A rush option with a 5-business-day turnaround is offered subject to capacity.
Studies use the Replacement Cost New Less Depreciation methodology and come with CPA-ready documentation and a collaboration dashboard. Audit support is included at no additional cost, with written responses to revenue service inquiries about the engineering methodology, asset classifications and study conclusions. Form 3115 preparation is an optional $600 add-on that includes the underlying Section 481(a) adjustment calculation, which lets an owner catch up missed depreciation in the current year without amending prior returns; the client or their CPA signs and files the form.
The company reports 20,000+ studies completed since 2022 and $2B+ saved on taxes, says fewer than 0.1% of its studies have been audited, and claims a 100% success rate defending those that were. It notes it has a Better Business Bureau profile but cautions that a profile alone does not mean BBB accreditation. First-year depreciation figures quoted on the site — often 25-50% of building value for engineered studies and 20-40% of basis for Rapid Reports — are ranges, not promises, so request the free proposal before committing.
Best for
Owners of rental, short-term rental and commercial property with enough depreciable basis to justify a study, including look-back studies on property bought years ago. Simple residential fits the Rapid Report; complex or mixed-use needs the engineered study.
What they do
- Fully engineered cost segregation studies
- Rapid Report cost segregation studies
- Software-based cost segregation studies
- Look-back studies on previously placed-in-service property
- IRS Form 3115 preparation
- Section 481(a) adjustment calculation
- Audit support with written responses
- Free savings proposal and depreciation calculator
Details
| Attribute | Value |
|---|---|
| How they charge | Software studies start at $500, Rapid Reports at $950, and fully engineered studies at $2,320 residential and $2,730 commercial; Form 3115 preparation is $600 per study. |
| Method | Both |
| Minimum basis | None |
| Audit defense included | Yes |
What stands out
- Publishes pricing: software studies from $500, Rapid Reports from $950, and engineered studies from $2,320 residential or $2,730 commercial.
- Reports 20,000+ studies completed since 2022 and $2B+ saved on taxes for clients.
- Says fewer than 0.1% of its studies have ever been audited, with a 100% success rate defending those audits.
- Audit support, including written responses to revenue service inquiries, is included at no additional charge.
- Form 3115 preparation is an optional $600 add-on that includes the Section 481(a) adjustment calculation.
Common questions
- Can I do a study on a property I bought years ago?
- Often, yes. The firm says a look-back study can capture missed depreciation in the current tax year without amending prior returns, using Form 3115 and a Section 481(a) adjustment to make the change as an automatic accounting method change.
- How long does a cost segregation study take?
- A Rapid Report usually takes about 5-10 business days after payment and the online questionnaire — roughly 3-5 days of engineering review and about 2 days to prepare the report. A Fully Engineered Study typically takes 15-20 business days once documents are submitted and the virtual inspection is done. A rush option with a 5-business-day turnaround is offered, subject to capacity.
- What do I need to have ready to get a proposal?
- The property address, purchase price, closing date and any major improvements made since purchase. The firm says that is enough for a solid estimate, and it provides a free proposal and an online calculator before any study is commissioned.
- Is R.E. Cost Seg listed with the Better Business Bureau?
- Yes. The firm says it has a BBB Business Profile where customers can see current business information and any ratings or feedback published by the Better Business Bureau. It also notes that having a profile does not by itself mean a business is BBB accredited or endorsed, and points customers to the profile for its current status.