Choosing the right cost segregation provider is one of the most important decisions a real estate investor or property owner can make. The difference between a qualified, engineering-based firm and a cut-rate alternative can mean tens, or even hundreds of thousands of dollars in missed deductions, unexpected audit exposure, and hidden fees.
To help you make a confident, informed decision, here are the top questions you should ask any cost segregation provider before signing on; along with the answers you should expect from a firm you can truly trust.
Q1: Are You an Engineering-Based Firm?
This might be the single most important question you can ask. Engineering-based cost segregation studies are conducted by licensed engineers who physically inspect the property and apply rigorous methodologies to identify and classify every qualifying asset. This depth of expertise leads to more accurate results, higher depreciation capture, and significantly reduced audit risk. In recent years, DIY software solutions and non-engineering providers have entered the market. While they may appear faster, cheaper, and easier on the surface, the tradeoffs are significant: these approaches often leave substantial savings on the table and carry a much greater risk of triggering an IRS audit due to unsupported or imprecise asset classifications. We are proudly an engineering-based firm. Every study we complete is backed by licensed professionals who understand construction, building systems, and tax law; ensuring you get the maximum benefit with the most defensible methodology available.
Q2: How Much Experience Do You Have?
Experience in cost segregation isn’t just a number; it’s a track record of navigating complex properties, evolving tax regulations, and unique asset types across every sector of real estate. Our firm has been in business for over 23 years and stands as one of the original pioneers in offering cost segregation studies nationwide. We were part of the generation that helped establish the practice as a mainstream tax strategy, and our depth of institutional knowledge is unmatched. When you work with us, you’re working with a team that has seen virtually every property type, every challenge, and every opportunity the industry has to offer.
Q3: Do You Have National Capability?
Real estate investors often own properties across multiple states, and your cost segregation provider should be able to go wherever your portfolio takes you. We offer comprehensive nationwide service, supported by a reputable force of professionals spread across the country. This means you benefit from the consistency of a national firm combined with the advantage of localized support; professionals who understand regional construction methods, local market nuances, and state-specific considerations that can impact your study results.
Q4: Are You IRS-Compliant?
IRS compliance isn’t optional, it’s the foundation of every credible cost segregation study. A provider that cuts corners on methodology or documentation is not just gambling with your return; they’re gambling with your financial future. Our studies are built on IRS-compliant methodologies from the ground up. The proof is in our results: with over 60,000 completed studies, we have never once triggered an IRS audit. That’s not luck, that’s the result of decades of disciplined, engineering-driven practice and meticulous documentation.
Q5: Do You Offer Audit Support If It Were to Happen?
Even with a fully compliant study, unexpected situations can arise. You should never be left facing an audit alone, and you should never have to pay extra for your provider to stand behind their own work. We provide full audit support at no additional charge. If our work is ever questioned, we are prepared to defend it; completely and at no cost to you. It’s part of our commitment to the quality and integrity of every study we deliver.
Q6: Can You Perform Cost Segregation on Any Type of Asset?
Not all cost segregation providers are equipped to handle the full range of property and asset types. Some specialize narrowly, which can leave you without options for more complex or unique holdings. With over 60,000 completed studies, we have performed cost segregation on virtually every asset type imaginable. From commercial office buildings and retail centers to industrial facilities, multifamily properties, hospitality assets, healthcare facilities, and beyond. If cost segregation can be performed on it, we have the expertise to do it.
Q7: Do You Incorporate Partial Asset Disposition (PAD)?
Partial Asset Disposition (PAD) is a powerful, and frequently overlooked, component of a comprehensive cost segregation strategy. PAD allows property owners to write off the remaining tax basis of structural components that have been retired or replaced, generating immediate deductions that most providers simply leave behind. Many major cost segregation firms do not offer PAD services, leaving significant value on the table for their clients. We fully incorporate PAD into our studies, ensuring that every available deduction, including those tied to prior improvements and replacements, is identified and captured on your behalf.
Q8: Do You Provide Form 3115 to Capture Potential Missed Deductions?
If you’ve owned a property for years without the benefit of a cost segregation study, you may be sitting on years of uncaptured depreciation deductions. IRS Form 3115, the Application for Change in Accounting Method, allows qualifying property owners to catch up on those missed deductions in a single tax year, without the need to amend prior returns. We offer Form 3115 filing services to help you unlock the full retroactive value of your properties. This is an often underutilized strategy that can result in a substantial lump-sum deduction for property owners who haven’t previously had a study performed.
Q9: How Transparent Are You About Fees and Feasibility?
The best cost segregation firms earn your trust by being straightforward; even when the most straightforward answer is “a study might not be right for your property.” We believe in complete transparency at every step of the process. We never overpromise, especially on smaller properties where a study’s benefits may not outweigh the cost. If we believe a study won’t benefit you, we’ll tell you, before you spend a dollar. For every engagement, fees are clearly communicated upfront with no hidden charges, no surprises, and no fine print. We also offer no-cost, no-obligation analyses so you can understand your potential benefit before making any commitment. Our goal is not just to complete a study, it’s to make sure every study we complete genuinely serves your financial interest.
Ready to Get Started?
Choosing a cost segregation partner is a decision that deserves the same diligence you bring to every real estate investment. Ask these questions. Demand clear, confident answers. And look for a firm with the experience, engineering foundation, national reach, and integrity to back up every study they produce.
With over 23 years in business, 60,000+ completed studies, full IRS compliance, comprehensive PAD and Form 3115 services, and a commitment to honest, transparent client relationships; we’re confident we have the right answers to all of the questions above.
Contact us today for your no-cost, no-obligation analysis and find out how much you could be saving.
