cost segregation study for 2 family property 5K$ in NYC ??

[Phil Shelton]

got a quote from my CPA and he said it would cost 5K for a cost segregation study for 2 family property.

do cost segregation studies require someone to come in person and check everything out? or is it what i report i spent on reno?

[Bonnie Griffin Kaake]

@Phil Shelton  The IRS' recommended methodology is an engineering-based study. Yes, these do require a site review inside and outside. There are other methods of doing cost segregation studies and many cost seg companies use them because they cost less for the companies doing them. They are more likely to have errors that can get the attention of the IRS but if your only concern is how much you pay for the study, it is your choice. Most, if not all of the other less detailed studies don't offer audit defense at no cost with the study. 

Depending on what company your CPA is using, you may want to get a competitive estimate. Just remember that you need to know what you are getting for what you are paying. If someone asked me "what will a car cost" and I give them the lowest priced car to get their business, maybe a used car, that would be quite different than a new BMW or Lexus with all the bells and whistles. Know the questions to ask before agreeing to pay money for the study.