Five questions. We do the math. You get a clean answer.
Of properties that fit the typical investor profile, roughly two-thirds pass the math; one-third don’t. The difference is rarely property type — it’s tax bracket, hold period, and whether passive losses are usable.
If you already know your property qualifies, get an engineered 40+ page study from $495. CPA-ready, delivered in under an hour.
The hardest sale to make is “don’t buy our product.” Most cost-seg providers won’t make it. Here’s the version we tell our own clients.
Most cost-seg pages won’t tell you this. We will.
Skip the study if you plan to sell within ~2 years (depreciation recapture wipes the benefit), if your basis is under ~$200K (the study fee exceeds the present-value benefit), if you’re in the 12% tax bracket (each $1 of deduction is only worth $0.12), if it’s your primary residence (only income-producing property qualifies), or if you have no passive income and aren’t a real estate professional (losses get suspended).
Typical year-1 federal tax savings range from $20K to $80K on a residential rental in the $500K–$1M range, depending on tax bracket and bonus depreciation rate. The decision tool above gives a specific range based on your property’s purchase price, tax bracket, hold period, and placed-in-service year.
Yes. You can do a “look-back” study any year you still own the property. The IRS allows a Form 3115 catch-up adjustment that claims all the depreciation you should have taken in prior years as a single current-year deduction. This is often the largest single benefit for properties held 3+ years.
Cost segregation is an IRS-sanctioned methodology with its own published Audit Techniques Guide (Publication 5653). An engineering-based study from a credentialed provider is strong audit documentation — not a red flag. Audit risk is marginal and well below the value of the deduction for properties that meet the math threshold.
costsegworthit.com is a free decision tool — it answers the question “should I do this study?” with a YES / MAYBE / NO. costsegsmart.com is the operator that delivers the actual studies (40+ page IRS-defensible PDF) starting at $495 once you decide it’s worth it. Both are operated by Cost Seg Smart LLC.
Get a line-item engagement quote and the exact reclassification breakdown for your asset on costsegsmart.com.
Run your numbers →