Online Cost Seg Companies for Residential
13 Replies
- 2yMichael PlaksPro MemberTax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
This post has some important pointers:
https://www.biggerpockets.com/forums/51/topics/1136752-expla...
- 2ySean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votesThis is helpful @Susie C.
Quote from @Susie C.:
Anyone use online resources for cost seg? Cost is ~ $400-600 vs $1500-2000. I own a condo and SFR I want to cost seg.
Companies I've found and the cost they would charge for 1 property under 500k
- KBKG - $450 - (audit support included)
- Re Cost Seg - $1800 (audit support included)
- DIY Cost Seg - $495 (+ additional $195 for audit support)
Would love feedback to before settling on one. The estimate I got from DIY Cost Seg was the highest. KBKG was the lowest.
I wasn't aware of Re Cost Seg from this list. We have clients ask for resources on cost segregation reports all the time. It's helpful to have creditable place to send them for support. I'll look into Re Cost Seg - I'm already familiar with the other 2. - 2ySusie C.Investor · Seattle, WA · Member since 2016 · 48 posts · 12 votesOP
Quote from @Sean O'Keefe:
This is helpful @Susie C.Quote from @Susie C.:
Anyone use online resources for cost seg? Cost is ~ $400-600 vs $1500-2000. I own a condo and SFR I want to cost seg.
Companies I've found and the cost they would charge for 1 property under 500k
- KBKG - $450 - (audit support included)
- Re Cost Seg - $1800 (audit support included)
- DIY Cost Seg - $495 (+ additional $195 for audit support)
Would love feedback to before settling on one. The estimate I got from DIY Cost Seg was the highest. KBKG was the lowest.
I wasn't aware of Re Cost Seg from this list. We have clients ask for resources on cost segregation reports all the time. It's helpful to have creditable place to send them for support. I'll look into Re Cost Seg - I'm already familiar with the other 2.Thanks Sean, I just completed the KBKG one. This one provided me with the study, but when I sent it over to my CPA they said they can't use it because there's no form 3115. Can't the CPA complete the 3115 themselves or does this need to be completed by the cost seg company used? When I've researched this, it looks like it can be completed by the CPA, but perhaps I am wrong?
Property was in service 2019, doing cost seg for 2023 year. Need return amended.
- 2ySean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
Quote from @Susie C.:
Quote from @Sean O'Keefe:
This is helpful @Susie C.Quote from @Susie C.:
Anyone use online resources for cost seg? Cost is ~ $400-600 vs $1500-2000. I own a condo and SFR I want to cost seg.
Companies I've found and the cost they would charge for 1 property under 500k
- KBKG - $450 - (audit support included)
- Re Cost Seg - $1800 (audit support included)
- DIY Cost Seg - $495 (+ additional $195 for audit support)
Would love feedback to before settling on one. The estimate I got from DIY Cost Seg was the highest. KBKG was the lowest.
I wasn't aware of Re Cost Seg from this list. We have clients ask for resources on cost segregation reports all the time. It's helpful to have creditable place to send them for support. I'll look into Re Cost Seg - I'm already familiar with the other 2.Thanks Sean, I just completed the KBKG one. This one provided me with the study, but when I sent it over to my CPA they said they can't use it because there's no form 3115. Can't the CPA complete the 3115 themselves or does this need to be completed by the cost seg company used? When I've researched this, it looks like it can be completed by the CPA, but perhaps I am wrong?
Property was in service 2019, doing cost seg for 2023 year. Need return amended.
Susie C. The CPA can prepare the Form 3115.
Self-service cost segregation reports don't include this. - 2ySusie C.Investor · Seattle, WA · Member since 2016 · 48 posts · 12 votesOP
Quote from @Sean O'Keefe:
Quote from @Susie C.:
Quote from @Sean O'Keefe:
This is helpful @Susie C.Quote from @Susie C.:
Anyone use online resources for cost seg? Cost is ~ $400-600 vs $1500-2000. I own a condo and SFR I want to cost seg.
Companies I've found and the cost they would charge for 1 property under 500k
- KBKG - $450 - (audit support included)
- Re Cost Seg - $1800 (audit support included)
- DIY Cost Seg - $495 (+ additional $195 for audit support)
Would love feedback to before settling on one. The estimate I got from DIY Cost Seg was the highest. KBKG was the lowest.
I wasn't aware of Re Cost Seg from this list. We have clients ask for resources on cost segregation reports all the time. It's helpful to have creditable place to send them for support. I'll look into Re Cost Seg - I'm already familiar with the other 2.Thanks Sean, I just completed the KBKG one. This one provided me with the study, but when I sent it over to my CPA they said they can't use it because there's no form 3115. Can't the CPA complete the 3115 themselves or does this need to be completed by the cost seg company used? When I've researched this, it looks like it can be completed by the CPA, but perhaps I am wrong?
Property was in service 2019, doing cost seg for 2023 year. Need return amended.
Susie C. The CPA can prepare the Form 3115.
Self-service cost segregation reports don't include this.Thanks Sean. This was the reasoning from them. Does the property being placed in service in 2019 matter at all?
"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."
- 2ySean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
Quote from @Susie C.:
Quote from @Sean O'Keefe:
Quote from @Susie C.:
Quote from @Sean O'Keefe:
This is helpful @Susie C.Quote from @Susie C.:
Anyone use online resources for cost seg? Cost is ~ $400-600 vs $1500-2000. I own a condo and SFR I want to cost seg.
Companies I've found and the cost they would charge for 1 property under 500k
- KBKG - $450 - (audit support included)
- Re Cost Seg - $1800 (audit support included)
- DIY Cost Seg - $495 (+ additional $195 for audit support)
Would love feedback to before settling on one. The estimate I got from DIY Cost Seg was the highest. KBKG was the lowest.
I wasn't aware of Re Cost Seg from this list. We have clients ask for resources on cost segregation reports all the time. It's helpful to have creditable place to send them for support. I'll look into Re Cost Seg - I'm already familiar with the other 2.Thanks Sean, I just completed the KBKG one. This one provided me with the study, but when I sent it over to my CPA they said they can't use it because there's no form 3115. Can't the CPA complete the 3115 themselves or does this need to be completed by the cost seg company used? When I've researched this, it looks like it can be completed by the CPA, but perhaps I am wrong?
Property was in service 2019, doing cost seg for 2023 year. Need return amended.
Susie C. The CPA can prepare the Form 3115.
Self-service cost segregation reports don't include this.Thanks Sean. This was the reasoning from them. Does the property being placed in service in 2019 matter at all?
"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."
Whether it’s online or an Engineering Firm doing cost seg they don’t like to do them after properties been in service for > 2 years (and if you do it will need to be an Engineering Firm, not self-service). The reason isn’t filling out Form 3115. Your CPA should have informed you of this before you went out and paid for cost seg.
- 2yJulio GonzalezPro MemberSpecialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
Here are some additional FAQs on cost segregation including prices that you may find helpful.
https://www.biggerpockets.com/forums/51/topics/1113749-cost-...
- 2yNate MeekerBusiness MemberReal Estate CPA | California · Member since 2020 · 543 posts · 251 votes
@Susie C. - Even though I could DIY it, I work with the following company and individual. They have been in business for years and are nationwide.
Steve Mecham
https://costsegauthority.com
The CPA Realtor 569 Reviews - 11moSean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votesI would read this thread on cost seg reports. It may influence how you think about DIY (e.g. self-service) and virtual reports.
Quote from @Steven Coulis:
This thread is a bit old but the DIY/automated online options have evolved since, with some new players (including SegWize) entering the market...as well as some tech-enabled but still fully-engineered options like Segtax.
I think the expansion of DIY options and the benefits of cost seg is great for investors of smaller properties, but I would highly suggest speaking with a tax advisor/CPA first to put together a plan and ensure you can actually use the additional depreciation first! - Member since 2024 · 2 posts · 0 votes11mo
I am not a CPA but I file my own complex tax returns (STR, LTRs, RE Agent, W2s and more). I used recostseg last year for 5 properties and they were very nice to work with, even for their rapid reports it felt like almost engineered reports as they looked into videos and pictures of the properties before giving me the final report. Having said that, I honestly think KBKG is best for under $700K cost-basis LTR properties without complications (such as placed in service in the past, paused, stoped, continued and some weird combinations like that) as they will give you exactly what you need a XLS file with depreciation schedule, IRS needs only that as does your tax software or CPA. It's data entry after that. KBKG is cheaper and faster, I have heard that those $5K+ per property cost seg studies will give more deductions in the 1st yr but I have no proof of that, all I know is my $5K given to one of those companies will never come back to me :-)
- 11moSean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
Here's a great thread https://www.biggerpockets.com/forums/51/topics/1258422-cost-... with insights on risk, pros, and cons of different types of cost seg reports -> virtual, self-service (DIY), onsite
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