FAQs

COST SEGREGATION FREQUENTLY ASKED QUESTIONS

Below are the answers to commonly asked questions about our online cost segregation software. If you have more questions that aren’t answered below, feel free to reach out to us directly on our contact page.

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OUR FAQs

Why use cost segregation?

Cost segregation allows you to accelerate depreciation on portions of your building and site by identifying them as personal property. By accelerating depreciation, you lessen your tax burden and put more money in your pocket. As an example, if you are in the 37% tax bracket, and your cost segregation study gives you an additional $100,000 in depreciation for your first year, that could be $37,000 in extra cash flow.

When will I get my report?

Your report will be generated automatically and readily downloadable after payment. We have a secure checkout process with PayPal as well as credit/debit card checkout for your convenience.

Does doing a cost segregation study increase my chances of an IRS audit?

Having a cost segregation study done on your property will not increase the chances of being audited by the IRS. We have been involved in over 15,000 studies and have only been to audit 8 times. We have also successfully defended every audit without any mandatory changes.

How does your audit defense work?

When you purchase audit defense, we will defend your study results if you are ever subject to an IRS audit where our study was used, and the cost segregation results are questioned. Please note that you will need to provide us with pictures and video of the interior and exterior of your property, as well as copies of any IRS correspondence. The only possible cost to you will be direct travel expenses for us to visit the site if necessary. Our defense may include extra detail including a fully engineered cost segregation report if that is deemed necessary by diycostseg.com. Check out what the IRS had to say about our most recent audit here.

Can I still run a cost segregation study on a building that has already been placed into service that has taken straight line depreciation?

Yes, you can. Depending on when your building was placed into service, you may be eligible to only amend your previously filed tax return. If it has been more than one year of your tax returns having been filed, it is our understanding that you must file form 3115 for a section 481(a) adjustment otherwise known as change of accounting method. Any depreciation that should have been taken previously with a cost segregation study done from the time the building was placed into service can be recaptured by this method. If your tax advisor is not familiar with filing form 3115, we have accountants that we work with who can fill out this form for an additional fee.

Do I qualify for bonus depreciation?

It is our understanding that depending on tax law for the year your building was placed into service, you may qualify for bonus depreciation. If this is a new building purchased or constructed in 2018 and through the end of 2022, all accelerated values will qualify for bonus depreciation. We recommend you consult with your tax advisor to discuss bonus depreciation related to your situation.

 

Can I still do a cost segregation study on properties that I own internationally?

It is our understanding that if you are paying U.S. federal taxes, then yes you can perform a cost segregation study on properties that are located overseas. Please speak to your CPA/tax professional before moving forward.

 

How do I find my land value for my property?

We would advise you to speak to your tax professional to determine the correct land value you should use for the study. It is our understanding that you may use the county’s assessed value and determine the percentage they used to determine the land value from their building amount and then apply that same percentage to your current purchase price. However, again please confirm with your CPA before moving forward.

 

Can you show me how to fill out the forms?

Sure, reach out to us here! We are currently working on Video Walkthroughs so you can see a step-by-step process on how to fill out our forms!

 

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Residential Buildings: 

Ranging from $495-$995 

Click here to get started on a Single Family Home through a 4-plex. For residential buildings containing 5 or more units use the commercial tab.

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Commercial Buildings:

Ranging from $1,295-$2,495 

Own a commercial building? From banks to restaurants, we have the study for you! 

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Report Corrections:

$49

If you made an error on your input and need corrections, click here. Corrections will be made within 2 business days.

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