Cost Seg, price.

[Alexander King]

Per property how much are people currently paying per property for cost seg?  I heard its 5-10k per property.  

[Michael Plaks]

Quote from @Susie C.:

'You can't do an online cost seg unless it is new and put in service for the current year, not for prior years. You would need to go through a cost seg company and get an official report since they would also prepare the form 3115 that we include with the tax return. We cannot do the cost seg or do your taxes without that form. I sent you to the Cost Segregation Authority they are who we work with the most, but you are free to use anyone you wish, so long as they also prepare the 3115 in addition to the cost seg report, which you need for that particular property since it was placed in service back in 2019.'

Their answer can be misleading. Yes, you will need to prepare Form 3115 along with the related calculations, incorporate it into your tax return and file it in a rather weird way (must be sent to two places.) 

However - this is NOT part of cost segregation study. It is a step AFTER cost segregation study. It is the same step whether you use a full-service cost seg company or a DIY website like KBKG.

Normally, 3115 is a job for your accountant. Some (not all) full-service cost seg companies include preparing Form 3115 with their package. Some do it well, and some mess it up. I had to redo a few of them for my clients.

Finally -  "It’s fairly common and most CPA’s should be familiar with how to do this" - is not the reality. The form itself, and especially the calculation of that "481a adjustment" are complex and confusing. Very few tax accountants have experience doing it, and I recommend choosing one who specializes in real estate and knows how to do it.