Questions & Answers
Straight answers to the questions investors, property owners, and CPAs ask us most. Flat $2,100 per study — every one with a live, on-site appraiser inspection.
Our price is $2,100 per study, flat. No tiered pricing, no percentage-of-savings surprises, no "call for a quote" games. Most firms either charge $5,000–$15,000 for a full engineering study or sell a $495 software report that won't hold up under scrutiny. We priced ourselves in between on purpose: a real, defensible, appraiser-inspected study at a price that makes sense for a single rental or a small commercial building.
When you buy or build a property, the IRS normally makes you depreciate the whole thing over 27.5 years (residential rental) or 39 years (commercial). But a building isn't one thing — it's carpet, cabinets, lighting, landscaping, specialty electrical, parking lots, and dozens of other components that actually wear out much faster. A cost segregation study identifies those components and reclassifies them into 5-, 7-, and 15-year depreciation schedules. That means bigger deductions much sooner.
For most owners of properties worth roughly $200,000 or more, yes. Typically 20–35% of your building's basis can be reclassified into shorter schedules. On a $1,000,000 building, that can mean $200,000–$350,000 of deductions pulled forward into the early years — and with 100% bonus depreciation now permanent, much of that can often be deducted immediately. The tax savings usually dwarf the $2,100 cost many times over. The honest answer: run the numbers on your specific property. We'll tell you straight if it doesn't pencil out.
Every one of our studies includes a live, on-site inspection performed by a licensed appraiser. Cheap software studies rely on you uploading photos and floor plans, then a program estimates values. That's a red flag in an audit. Our founder, Mike Baldwin, is a Certified General Appraiser licensed in 11 states, an MAI candidate, and a licensed real estate broker. We physically document your components. If the IRS ever asks how a number was derived, we have real evidence — not an algorithm's guess.
Absolutely. Residential rental properties (single-family rentals, duplexes, small multifamily) are among the most common candidates. They depreciate over 27.5 years by default, so accelerating even a portion into 5- and 15-year buckets can meaningfully reduce your taxable rental income. Short-term rentals can be especially powerful depending on how the property is used.
Almost any income-producing real estate: apartment buildings, single-family rentals, office buildings, retail, warehouses, self-storage, medical offices, restaurants, hotels, auto shops, and more. If you own it, rent it out or use it in a business, and it's worth roughly $200,000+, it's usually worth a look.
Our appraiser visits the property and documents the building components — finishes, mechanical and electrical systems, site improvements, specialty items, and more. We photograph and measure what matters so each reclassified asset is supported by real, first-hand evidence. This is the step most competitors skip, and it's exactly the step that protects you if your return is ever questioned.
A properly engineered, appraiser-inspected study is your best defense. Because we perform a live inspection and document our methodology, your reclassifications are backed by evidence the IRS recognizes. We prepare studies to align with IRS guidance (including the IRS Cost Segregation Audit Techniques Guide). Software-only "studies" often can't show how they arrived at their numbers — which is precisely what draws scrutiny.
Yes. You don't have to amend old returns. Using a Form 3115 (Change in Accounting Method), you can "catch up" all the depreciation you should have taken in prior years — often as one large deduction in the current year. This "look-back" is one of the most underused opportunities in real estate. Talk to your CPA about whether it fits your situation.
No, but the year of acquisition or improvement is often the best time because of bonus depreciation. That said, the look-back method (Form 3115) lets you capture missed deductions on properties you've owned for years. Sooner is generally better, but it's rarely "too late."
Yes — and this is big. The One Big Beautiful Bill Act (OBBBA) made 100% bonus depreciation permanent. The old narrative about bonus depreciation phasing down to 20% by 2026 is now outdated. Any assets identified in your study with a recovery period of 20 years or less (your 5-, 7-, and 15-year components) can generally be deducted 100% in the first year. This makes cost segregation more valuable than ever — every year you depreciate over 27.5 or 39 years instead is money left on the table.
Typically a few weeks from the on-site inspection to the delivered report, depending on scheduling and property complexity. We'll give you a realistic timeline when we scope your property.
Yes. We deliver a clean, documented report your CPA can drop straight into your tax preparation, including the asset detail and depreciation schedules they need. CPAs: we love referral partnerships — refer your clients to us and we make you look good with a defensible study at a transparent price.
Yes. Our sister company, Baldwin Appraisal Services LLC, brings deep valuation expertise to every cost segregation engagement. That appraisal DNA is exactly why we insist on real, on-site inspections rather than desktop estimates.
We're national in reach and rooted in Connecticut and New England. Wherever your property is, we can help.
We'll give you a straight answer on whether a study makes sense — no pressure.
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Disclaimer: This content is for general informational purposes only and does not constitute tax, legal, or accounting advice. Every situation is different. Please consult your own qualified tax advisor before making decisions based on this information.