Online Cost Seg studies Vs Site Visits

[Max Bellino]

Hey Everyone,

I hope everyone is having a great holiday season! I’m looking for guidance on whether it’s worth opting for a rapid report for a cost segregation study, which is less expensive than a full site visit. What are the pros and cons? Does it still provide effective results? Also, can anyone recommend a reliable company for this? I’m planning to do this for 3 multifamily properties all located in MA, each ranging from 2 to 4 units. Any advice would be much appreciated! Thank you!

[Ashish Acharya]

@Max Bellino For smaller properties like your 2–4 unit multifamily buildings, an online cost segregation study is a quicker and more cost-effective option, providing sufficient accuracy for straightforward properties. However, full site visits, though more expensive, maximize tax savings by capturing every depreciable asset and offer better audit protection.

While online studies may be suitable for simpler properties, full site visits are ideal for complex or high-value properties. Consult a tax professional to optimize deductions and explore strategies like Real Estate Professional Status or short-term rental loopholes to apply depreciation to non-passive income.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.