Cost Segregation Price?

Question

Hey all. I've been looking online but cant seem to find a great answer. I'm trying to find a good estimate of what I can expect to pay for a cost segregation study on a single family home in Connecticut with a purchase price of $272,000. It would be the first one I will have done so if anyone has a past experience/ story about running one for a similar scenario I'd love to hear it. Any feedback would be great. Thanks in advance

Julio Gonzalez · Answer

@James Parla The price depends on the type of study you have done as well as the quality and services that come with the study. For example, an engineered cost segregation study is a very in depth study that includes an onsite visit and the engineers look at the blueprints of your property and typically results in the most tax benefits. It should come with a high quality cost segregation study report as well as audit defense in the event that you were selected for an audit by the IRS.

James Parla · Answer

@Bonnie Griffin Kaake

Okay so I guess my question should be where/ who do I go to in order to get the estimate you’re talking about. I guess where’s my starting point? Any company recommendations to do so?

Samuel Eddinger · Answer

@James Parla - I did one last year - https://diycostseg.com/ .  For a real one it is 2 thousand or more but this one is less.  I did buy the audit protection as part of it in case I did get audited.

Bonnie Griffin Kaake · Answer

@James Parla Your best option is to get a no-cost estimate/pre-analysis. Then, between you and your CPA/tax professional you will be able to make the best decision about how that fits with your specific tax situation. How much does it cost is not relevant until you know what you are getting for that price. It is like asking how much does a car cost? Do you want a VW or a BMW? How much risk are you willing to take with a low cost study that increases your chances of audit?  A $272K SFH rental on the beach in CA is going to be quite different than a single family home in Kentucky. Is the place run down? Is the purchase price mostly land? Or, is it a high-end property that you got a fantastic deal on? Does it need a lot of renovation before occupancy? So many unanswered questions...many, you will not even know you need to know. Let me know if I can help.

Cost Segregation Price?

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