Frequently Asked Questions

faq

What is cost segregation?

Cost Segregation is a tax planning strategy that can provide companies and individuals who have acquired, constructed, or renovated real estate assets with increased cash flow by accelerating depreciation deductions and reducing or deferring federal and state income taxes.


Cost Segregation is an engineering analysis of real estate assets performed to identify and segregate the costs associated with components that can be depreciated more quickly for federal and state income tax purposes. Typically, real estate assets are depreciated over 27.5- or 39-years for tax purposes. The primary purpose of a Cost Segregation analysis is to identify those assets which are properly depreciated over 5-, 7-, or 15-years and are eligible for additional first year bonus depreciation. Depending on the type of real estate asset, as much as 20% to 50% of the cost may be eligible for accelerated depreciation. By identifying and accelerating depreciation deductions associated with these assets, Cost Segregation provides increased depreciation deductions, which can decrease federal and state income taxes and increase cash flow.

How does Cost Seg EZ work?

Cost Seg EZ is a web-based tool that helps real estate investors identify cost segregation opportunities and maximize their tax savings. Our tool is based on detailed models, 11+ years of experience, and over 1,000 cost segregation studies completed, which informs our calculations and allows us to identify the types of assets that can be segregated and accurately estimate the costs associated with those assets. Simply input information about your property and generate a cost segregation report in just a few simple steps. It’s that easy to unlock the power of cost segregation with Cost Seg EZ.

How much does Cost Seg EZ cost?

Cost Seg EZ offers a tiered pricing structure based on the cost basis of the building. The pricing tiers are as follows:

Cost Basis Price
< $500,000 $395
$500,000 - $1,000,000 $495
$1,000,001 - $1,500,000 $595
$1,500,001 - $2,000,000 $695
> $2,000,000 Contact Us

Please contact us to discuss volume discounts.

What types of property does Cost Seg EZ work for?

Cost Seg EZ is designed to work for a variety of property types, including single family residential, multifamily residential (properties with up to 20 units), and short term rentals. If you own or manage any of these types of properties and are interested in maximizing your tax savings through cost segregation, Cost Seg EZ can help. If you have a property type that is not listed here, please don't hesitate to contact us to inquire about other cost segregation options.

How is Cost Seg EZ different from a traditional cost segregation study?

Cost Seg EZ offers a more convenient and cost-effective alternative to traditional cost segregation studies. Rather than hiring an engineer to perform a detailed analysis of your property, you can use our online tool to quickly and easily generate a cost segregation study on your own. Our tool is user-friendly and guides you through the process step-by-step, making it easy to identify and reclassify assets for maximum tax savings. Additionally, our pricing structure is based on the cost basis of your property, rather than the time and resources required to complete the study, so you can be confident that you are getting a fair price for the value you receive.

What information do I need to get a Cost Seg EZ study?

To generate a cost segregation study with Cost Seg EZ, you will need to provide some basic information about your property. This will include the address, square footage, year built, construction quality, property condition, flooring types, kitchen cabinets and appliance details, exterior improvements, etc. Please click here for detailed descriptions of the required inputs.

What if I have questions or don’t know how to respond to one of the inputs?

If you have any questions or are unsure of how to respond to any of the inputs when using Cost Seg EZ, we have several resources available to help you. Our tool includes detailed instructions and a how-to video that can guide you through the process step-by-step. If you still have questions or need additional assistance , don't hesitate to contact us. You can also click here to schedule a consultation or demo. Our team is here to help and will be happy to assist you in any way we can.

Do you offer audit protection?

Yes, we offer audit protection for an additional cost of $99 per property. This option can be purchased after you have completed your Cost Seg EZ study and must be purchased within 30 days of generating your cost segregation report. If you purchase audit protection and you are audited anytime in the future, we will provide assistance as needed. Our support will include assistance with document requests, preparing responses to IRS inquiries, and providing any additional information required to support the cost segregation analysis. If necessary, we will also perform a fully engineered cost segregation study for your property to support the analysis originally completed with Cost Seg EZ. The only additional cost would be for travel to the site (if required).

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Quickly and easily generate cost segregation studies.

Email

info@costsegez.com

Phone

1-800-209-0330


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