Have you hired Cost Segregation Guys for a cost segregation study?

Question

Hi All, I'd love to hear from you!

Have you hired Cost Segregation Guys for a cost segregation study?

I have some properties that I'd like to have cost seg studies completed on, and would LOVE to hear what your experience has been, specifically with the company "Cost Segregation Guys."

The reclassification estimates are fairly  aggressive in comparison to what Google/AI deems reasonable, but I'd really appreciate hearing your experience.

Some specific questions (but please feel free to share anything else! I'm all ears :)

1. Did the study produce more of the 'optimal' benefit or the 'moderate' that is quoted in the estimate?

2. Did the IRS flag the study at all for either audit or other? (If it triggered an audit- what was the outcome- did you win the audit once they provided a detailed version of the engineering study?)

THANK YOU SUBSTANTIALLY POCKETED CITIZENS!

Aaron Zimmerman · Answer

I'd recommend an engineered based study too. Happy to refer you towards a couple of my preferred vendors. They're timely and I feel like they're not overly aggressive. I have never worked with the cost segregation guys

Kristin Perl · Answer

Thank you so much, @Ana Garcia. I'll ask them for a sample report. Really appreciate you!

Ana Garcia · Answer

Hi Kristin,

As a CPA, I always advise my clients to go with a quality, engineering-based cost segregation firm rather than relying solely on aggressive estimate algorithms or software-only shortcuts.

When you do a study, you want an audit-tested, fully documented engineering report that can actually back up the accelerated depreciation if the IRS ever comes knocking. To address your second question: using an engineering-based study is a very safe strategy. The IRS generally accepts studies performed by qualified professionals following engineering principles, making audit triggers or adjustments far less likely compared to "DIY" or software-only estimates.

Definitely ask any firm you're considering for sample reports and whether they offer full audit defense included in their fee!