Frequently asked questions

A cost segregation study is an engineering-based tax analysis that separates the short-lived components of a property — fixtures, equipment, specialty systems, site improvements — from the building itself, so each component depreciates over 5, 7, or 15 years instead of 27.5 or 39 years. The result is larger depreciation deductions in the earliest years of ownership and more cash flow today. The IRS recognizes the methodology in its Cost Segregation Audit Technique Guide (Pub 5653).

SegWise publishes starting prices — 10% below the published fees of the national rapid-delivery firms: SegWise Rapid from $855 (questionnaire study for small rentals), SegWise Quick™ from $1,499 (24-hour engineered delivery), and our Full Engineered Study from $2,088 for residential and $2,457+ for commercial properties. Final pricing depends on property size, type, and complexity, and you get a flat quote — typically the same business day — before any work begins. Industry-wide, engineering-based studies commonly run $3,000–$15,000+.

For most properties with at least $250K of depreciable basis, yes: first-year tax savings typically run many multiples of the study fee (our case examples range from 10× to 90×), and you can quantify it before you spend a dollar using our free calculator and free written proposal. If the math is thin for your property, we tell you — not every property justifies a study yet.

No. Studies can be done retroactively to the year you placed the property in service. Missed depreciation from prior years is claimed as a one-time "catch-up" deduction on your current return by filing Form 3115 — you do not amend prior-year returns. Most owners have been on the standard 27.5/39-year schedule, so the catch-up is often the single largest deduction they have ever claimed.

Quick™ is our AI-accelerated study tier for deadline situations — closings, extensions, and year-end placed-in-service dates. AI pre-classifies components from your closing statement, blueprints, and invoices, then our engineers and CPAs review, correct, and sign the report — within 24 business hours of receiving complete property documents. Every Quick™ study carries the same IRS-defensible methodology and audit-ready documentation as our standard work.

Cost segregation is an IRS-recognized strategy used by millions of property owners, and audit rates follow the quality of the documentation, not the strategy itself. Studies that follow the engineering methodology outlined in the IRS Cost Segregation Audit Technique Guide carry materially less risk — and SegWise includes audit support with every study at no additional charge.

It depends on property type. In our modeled ranges, apartment buildings commonly land around 26–38%, offices 28–41%, medical offices 27–42%, and industrial/warehouse 25–39% of the depreciable basis (purchase price less land). Residential rentals vary more with construction quality and personal property included. These are ranges, not promises — the study measures your actual building.

At minimum: your closing statement (HUD/ALTA settlement), purchase agreement, and property address. Helpful extras: an appraisal with line items, the contractor final accounting or builder invoices for new construction or renovations, and depreciation schedules of assets you have already booked. Missing some documents is common — we routinely work with what exists.

Yes. Every SegWise study includes the prior-year calculation and Form 3115 preparation for properties placed in service in earlier years, at no surprise add-on. Your CPA receives the form ready to e-file with the year-of-change return. (The §481(a) adjustment itself is set by IRS rules — in most cost-seg cases it is fully deductible in the change year.)

Real estate depreciation is generally passive, so using it against W-2 income requires a pathway like qualifying as a real estate professional (each spouse must independently exceed 750 hours and 50% of personal services in real property businesses — spousal hours do not combine since 2017), the short-term rental exception with material participation, or other exceptions your CPA can confirm. We model this before you order so expectations are set with your tax picture, not against it.

Plan the exit, don't fear the write-off. Depreciation recapture on residential real property is generally taxed at a maximum 25% rate, and 5/7/15-year components recapture as ordinary income — but accelerated deductions are time-value money: investors commonly keep net savings many times the eventual recapture, especially with 100% bonus depreciation now permanent for qualifying acquisitions after January 19, 2025. We include an exit-modeled view with every study.

You receive the full study, an asset-by-asset fixed-asset schedule in your CPA's format (CSV/QBO/XLS), the Form 3115 package if applicable, and a plain-English summary. Your CPA simply loads the schedule and files. We answer their questions directly — engineers to accountants — at no extra charge.