How much do you pay for cost segregation studies?

[Nicholas Fehr]

I've reached out to three companies who perform cost segregation studies and only received a response from one of them, despite my attempts to follow up with all of them. I received a predictive analysis which outlines a potential for $260,000 in bonus depreciation for my $1,425,000 property. The estimate for the study itself is coming in at around $7,500. Even though this is tax deductible, this seems like a lot to pay. I can afford to move forward with this, but wondering if anyone in the community has any input here. How much do you typically pay and how responsive are they? Would gladly accept A+ recommendations!

[Gabe G.]

Hello @Nicholas Fehr,

In my experience, hiring a firm to perform a cost seg study often doesn't make sense unless the building is several million $$s. There are companies that have automated the cost-seg process for smaller properties like you have. You can do a simple google search for diy cost seg studies. One I interviewed, but didn't end up using because we lost the deal was KBKG (https://www.kbkg.com/costsegre...). 

Hope this helps,

Gabe