What a Cost Segregation Study Should Cost (And Why)
Every study we deliver is engineering-based and signed by a licensed engineer. Our fee is set by the engineering work the property requires, not by what the property is worth. Here is the whole fee table, published, with the traditional market ranges next to it.
Most firms price cost segregation off the property's value or the projected tax savings. Neither one changes how much engineering the study takes.
That is the whole reason our pricing looks different. We price the work. Property type sets how many asset classes an engineer has to analyze, building size sets the scope inside that class, and the fee follows from there. Automation carries the data gathering, records pulls, imagery, and cost lookups, so the engineering hours land on classification, which is the part the IRS actually examines. The result: premium engineering without the premium markup.
Our Fee Table, and the Market Next to It
Three bands, set by the engineering work required. Property type comes first, then building size sets the scope inside the band. The property's market value is not an input:
| Engineering Scope | Our Fee | Traditional Firm Range | Property Examples |
|---|---|---|---|
| Residential and small | $1,200 - $2,500 | $3,000 - $9,000 | Single-family, condo, short-term rental, 2 to 4 unit multifamily |
| Standard commercial | $2,500 - $6,000 | $5,000 - $25,000 | Office, retail, restaurant, self-storage, warehouse, 5 to 20 unit multifamily |
| Large and complex | $6,000 - $12,000 | $12,000 - $60,000 | Hotels, 20+ unit apartment complexes, large industrial, $10M+ properties |
Above the top band, complex assets are quoted individually. There is no tier below $1,200, because there is no version of this that skips the engineer.
Why the Fee Tracks the Work
Same engineer, same standard, at every price point
A single-family rental takes the same engineer through a smaller set of asset classes than a 200-room hotel does. That difference is real and it belongs in the price. What the property sold for does not change the analysis, so it does not change our fee. Every study in every band gets a licensed engineer on the classification work, a signed report, and audit support.
Traditional firms quote $3,000 to $60,000 and typically take 2 to 6 weeks, largely because they bill manual categorization at $150 to $250 an hour. We deliver the same IRS Audit Technique Guide-compliant output in days. The difference is where the hours go, not whether an engineer does the work.
Where the Hours Go
After completing 1,000+ studies, Matthew mapped which parts of a study a machine can do faster and which parts require an engineer's judgment. Here's our approach:
1. AI for Pattern Recognition
80% of cost segregation is identifying standard components: carpet, cabinets, parking lots, specialty electrical. Our AI handles this instantly using data from our 1,000+ study database. Traditional firms bill $150+/hour for junior engineers to do the same work manually.
2. Matthew Verifies Every Number
Automation handles the grunt work. Matthew and our team review every asset classification, percentage allocation, and depreciation schedule. You get the speed of technology with the judgment of experienced engineers.
3. Focused Team, Zero Overhead
We're not a 200-person accounting firm with fancy offices and administrative layers. We're a close-knit team dedicated exclusively to cost segregation. No CFO advisory, no audit services, no distractions. Just cost seg, done exceptionally well.
4. Full Transparency
We disclose everything: our methodology, our data sources, our assumptions. No black boxes. You see exactly how we arrived at every number in your study. This is the opposite of how traditional firms operate.
What Every Study Includes, in Every Band
Our studies meet or exceed the standards described in the IRS Cost Segregation Audit Technique Guide (Publication 5653). Every study includes:
- Engineering-based component analysis: Licensed professional oversight by Matthew's team with field experience across 1,000+ properties
- IRS-compliant documentation: Detailed asset-level depreciation schedules formatted for direct tax return attachment
- Photographic evidence: Digital documentation for properties requiring site visits
- Legally defensible classifications: Every asset allocation supported by specific IRS guidance, Treasury Regulations, and Tax Court precedent
- Transparent methodology: Full disclosure of estimation methods, data sources, and calculation logic, no black boxes
- Lifetime audit support: We stand behind our work if the IRS questions your return
The difference between our studies and a traditional $5,000 to $15,000 study: we automate the 80% of the work that's data gathering and pattern matching, which cuts billable hours while the engineering rigor on complex classifications stays where it belongs.
Traditional Firm vs. Modern CFO
Traditional $12,000 Study:
Junior engineer spends 40 hours manually categorizing components, senior engineer reviews 8 hours, report writing 6 hours. Total: 54 billable hours at $150 to $250/hr = $8,100 to $13,500, marked up to $12,000+ for overhead and profit.
Modern CFO Approach:
Automated intake pulls records, imagery, and construction cost data in minutes, then Matthew reviews and adjusts the classifications, then the report assembles from the reviewed schedule. The engineering judgment stays human. The clerical hours don't get billed to you.
Same IRS-compliant output, same signature on it, priced to the work required.
Why Traditional Quotes Run Higher
It isn't malicious, it's structural. Large firms carry:
- High overhead: Corner offices, administrative staff, partner profit expectations
- Billable hour model: Incentivized to maximize hours, not efficiency
- Manual processes: Junior staff doing work that AI could handle instantly
- Cross-selling pressure: Cost seg is a loss leader to sell you audit/tax services
We don't have any of that. We're builders and engineers who saw an opportunity to apply technology to an outdated industry. Our entire business model is: deliver institutional-quality studies at prices accessible to individual property owners.
Our Democratization Philosophy
Our lead engineer Matthew built Modern CFO on a simple belief: tax strategies shouldn't be reserved for billion-dollar funds. If you own a $500k rental property, you deserve the same quality analysis as someone buying a $50M apartment complex.
Traditional firms keep pricing high and data hidden to maintain their moat. We're flipping that model. Transparent data, transparent pricing, technology-driven efficiency, human-verified quality.
This is how cost segregation should have worked from the beginning.
A Worked Example from Our Database
Actual Study: 16-unit Multifamily Property, Phoenix, AZ (2024)
Purchase Price: $2,100,000
Land Value: $420,000 (20%)
Depreciable Basis: $1,680,000
Study Result: 28% reclassified = $470,400 to accelerated depreciation
Traditional Firm Quote (actual): $8,500
Modern CFO Fee: $2,800 (standard commercial band, a 16-unit multifamily)
Cost Difference: $5,700 on the study fee
Tax Impact:
First-year extra depreciation: ~$68,000 (using MACRS accelerated methods)
Tax savings at 37% bracket: ~$25,160
Without 100% Bonus (Old Law):
Tax savings: ~$25,160 first year using MACRS
ROI: 3.0x on an $8,500 traditional fee, 9.0x on our $2,800 fee
With 100% Bonus (July 2025 Legislation):
First-year deduction on reclassified $470,400: full $470,400
Tax savings at 37%: $174,048 first year
ROI with Traditional Firm: $174,048 ÷ $8,500 = 20.5x
ROI with Modern CFO: $174,048 ÷ $2,800 = 62x first year
Note what is doing the work in those numbers. 100% bonus depreciation, which applies to qualified property acquired and placed in service after January 19, 2025, is what turns a good return into a large one. The fee difference is a smaller effect on top of it. Both studies are engineering-based, both are signed, both come with audit support.
Red Flags to Watch for (When Evaluating Other Firms)
Contingency Fees
The IRS Cost Segregation Audit Technique Guide (Publication 5653) tells examiners to closely scrutinize studies performed on a contingency fee, and points to Circular 230. We use fixed fees, so our incentive is accurate, defendable work.
Hidden Deliverables
If the engagement letter doesn't specify exactly what you're getting, walk away. We disclose everything upfront, no surprises, no upsells.
No Engineer on Team
IRS guidance emphasizes "engineering-based analysis." CPAs alone can't deliver compliant studies. Matthew's team includes licensed engineers.
Pressure to Buy Other Services
Big firms use cost seg as a loss leader to sell tax prep, CFO services, etc. We only do cost segregation, no cross-selling, no distractions.
Start with the Free Calculator
Before engaging us or any firm, run your property through our calculator. You'll see instant ROI estimates based on our 1,000+ study database. If the numbers work, schedule a free consultation to discuss a full study. If they don't, we'll tell you honestly, we're not here to sell you a study you don't need.
Ready to See Your Savings?
Get an instant estimate using our free calculator. If the ROI makes sense, we'll deliver an IRS-compliant study priced to the engineering work your property requires, with full transparency and Matthew's personal review of every number.
Continue Reading
Learn more about cost segregation with these related guides:
- → The 2026 Pricing Transparency Report. Our full pricing matrix with market comparisons from 1,000+ studies
- → How Much Does Cost Segregation Save?. See actual savings ranges by property type
- → Is Cost Segregation Worth It?. Decision framework based on 1,000+ studies
- → How the Calculator Works. Understand the AI methodology and accuracy
Disclaimer: Traditional market pricing ranges are estimates based on our team's experience across 1,000+ cost segregation studies and are provided for educational purposes only. Modern CFO pricing scales with property complexity; contact us for a specific quote. This information does not constitute tax, legal, or financial advice. Consult qualified professionals regarding your specific situation.