Qualified preparer and reviewer experience
DOCUMENTED AND DEFENSIBLE
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
A quality study needs more than a percentage estimate.
The IRS Cost Segregation Audit Technique Guide describes principal elements of a quality study and report. Strong work identifies the preparer, explains the methodology, documents asset classifications and reconciles allocated costs to the supported property basis.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
No label or software output makes a study defensible by itself. The report should show the property facts, records reviewed, estimating approach, quantities, unit costs, legal rationale, assumptions, limitations and asset schedules in enough detail for the owner and CPA to understand the result.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Principal quality elements to expect
Detailed property description and records reviewed
Engineering methodology and cost sources
Asset-level classification and legal rationale
Reconciliation to total depreciable basis
Clear assumptions, limitations and schedules
SHOW ME THE NUMBERS
What quality protects
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- Supported total basis
- Estimated depreciable basis
- Fully reconciled
- Potential faster basis
- Asset-level schedule
- Potential upfront federal effect
- CPA-reviewable output
- Study or comparison benchmark
- Scope matters more than page count
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Report is property specific
✓
Allocations reconcile to supported basis
✓
Methodology is transparent
✓
CPA can trace the final schedules
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Does the IRS approve individual cost segregation studies?+
The IRS does not pre-approve a private study. The report should follow sound engineering and tax-classification practices and be supportable if examined.
Is a PE signature required on every report?+
There is no blanket federal rule requiring a licensed professional engineer to stamp every study. The actual preparer, reviewer and scope should be disclosed in the proposal.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 17, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN