Cost Segregation FAQs

Frequently asked questions about cost segregation studies, eligibility, process, and tax benefits.

Common Questions

What is a cost segregation study?

A cost segregation study is an engineering-based analysis that reclassifies building components into shorter depreciation categories, accelerating tax deductions for property owners.

How much does a cost segregation study cost?

Studies for residential properties typically range from $1,750-$3,500. Small multifamily studies range from $3,000-$7,500. The ROI is typically 5-20x the study cost.

Can I do a cost segregation study on an older property?

Yes. A look-back study can be performed on any property regardless of when it was placed in service. The catch-up deduction is claimed via Form 3115 on the current year's return.