Cost Segregation Companies

[Ryan Knapp]

Does anyone have any experience with Cost Segregation Authority, Engineered Tax Services or Baker Tilly?  

I've gotten some estimates and a study and seeing wildly differing numbers as far as tax savings as well as cost. Just curious before I file using a study with potentially "stretched" numbers.

[Michael Plaks]

Quote from @Ryan Knapp:

I've gotten some estimates and a study and seeing wildly differing numbers as far as tax savings as well as cost. Just curious before I file using a study with potentially "stretched" numbers.

Cannot comment on costs. Can comment on tax savings. All estimates of tax savings by cost seg companies are generic hypothetical scenarios that make assumptions about your individual tax situation. The very same property with the same exact cost segregation study will produce different tax results for you and me, since our tax situations are not the same. The ONLY way to estimate your true tax savings is to have your own tax accountant do it specifically for you.

In addition, not all cost seg companies do their estimates in good faith. Some do what you politely labeled "stretching", and some go even farther into misleading. Here is a post showing examples: https://www.biggerpockets.com/forums/51/topics/831924-beware-how-cost-segregation-is-sold-to-you

Finally, the very concept of cost segregation is often misunderstood, as I explain here: https://www.biggerpockets.com/forums/51/topics/1075919-five-common-myths-of-cost-segregation-and-100-bonus-depreciation

Repeating myself, the only way to have an unbiased picture is to consult your own tax advisor.