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Best Cost Segregation Companies

Considering cost segregation for your commercial or investment real estate? The best cost segregation companies help you reap the most tax benefits while remaining compliant with IRS guidelines.

    Erica Seppala
  • Last updated onUpdated

  • Chelsea Krause
  • REVIEWED BY

    Chelsea Krause

    Lead Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

Cost segregation is a tax strategy that has the potential to lower the tax liability of property owners by thousands of dollars. A cost segregation study is critical to cashing in on these savings. Because of the level of expertise required to complete these studies, property owners need to hire a cost segregation company.

A cost segregation company specializes in assessing property components for accelerated depreciation, which minimizes tax liabilities for real estate owners. Some companies may also offer additional tax credit services to help businesses save even more on their income tax returns. In this post, we’ve selected the best cost segregation companies to help you accelerate depreciation on your commercial or investment property.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
KBKG

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  • Best overall for cost segregation
  • Cost segregation, ERC, R&D, 179D, 45L
  • Free feasibility analysis & cost seg calculator
  • Best overall for cost segregation
  • Cost segregation, ERC, R&D, 179D, 45L
  • Free feasibility analysis & cost seg calculator

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Omega Accounting Solutions

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  • Best for additional tax credits & incentives
  • Cost segregation, ERC, R&D, HRCTC
  • Free feasibility analysis
  • Best for additional tax credits & incentives
  • Cost segregation, ERC, R&D, HRCTC
  • Free feasibility analysis

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Engineered Tax Services

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  • Best for large businesses & properties
  • Cost segregation, ERC, R&D, WOTC, WIT, energy credits
  • Free feasibility analysis
  • Best for large businesses & properties
  • Cost segregation, ERC, R&D, WOTC, WIT, energy credits
  • Free feasibility analysis

Visit Site

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CSSI

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  • Best for small businesses & properties
  • Cost segregation
  • Free feasibility analysis
  • Best for small businesses & properties
  • Cost segregation
  • Free feasibility analysis

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Duffy+Duffy

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  • Best for LEED-certified projects
  • Cost segregation
  • Free feasibility analysis
  • Best for LEED-certified projects
  • Cost segregation
  • Free feasibility analysis

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Madison SPECS

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  • Best for remote cost segregation studies
  • Cost segregation
  • Free feasibility analysis
  • Best for remote cost segregation studies
  • Cost segregation
  • Free feasibility analysis

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Read more below to learn why we chose these options.

Table of Contents

The 6 Best Companies For Cost Segregation

The best cost segregation companies can provide cost segregation studies that maximize accelerated depreciation while staying compliant with tax codes. KBKG, Omega Accounting Solutions, and Engineered Tax Services top our list for their experience with cost segregation, solid reputations within the industry, and availability of additional tax credit services.

Quick Comparison Of Cost Segregation Companies

Company Best For Free Feasibility Analysis Additional Tax Credits
KBKG Overall best for cost segregation
Omega Business tax credits & incentives
Engineered Tax Services Larger properties
CSSI Small properties
Duffy+Duffy LEED-certified projects
Madison SPECS Remote studies

KBKG: Best Overall Cost Segregation

Total Rating 4.9
Fees5.0

Features4.8

Customer Service4.9

User Reviews5.0



Pros

  • Free feasibility analysis
  • Excellent customer service
  • Tax benefit calculators

Cons

  • Nontransparent fees
  • No live chat

Why We Chose KBKG As The Overall Best Cost Segregation Company

The number of resources alone made KBKG worthy of being on this list. Free tax calculators, tax software, a broad array of tax credit services, and years of industry experience only add to why this company is the overall top cost segregation choice. KBKG goes the extra mile by providing excellent customer support. The company has a solid number of online reviews -- something we rarely see with cost segregation companies. Beyond that, the reviews are overwhelmingly positive, with clients praising the company's team for professionalism, responsiveness, and the quality and timeliness of completing cost seg studies.

KBKG Tax Services

KBKG offers cost segregation services for property owners and businesses of all sizes across multiple industries. In addition to its cost segregation studies, KBKG also features these services:

  • ERC
  • R&D tax credits
  • Fixed asset reviews
  • Green building tax incentives
  • Interest Charge Domestic International Sales Corporation (IC-DISC)

KBKG Features

These standout features show why KBKG makes our list of the best cost segregation companies:

  • Free feasibility analysis: See if you qualify for cost segregation with a free initial analysis.
  • Free cost segregation calculator: One of the most unique and useful features we’ve seen, KBKG’s cost segregation calculator provides you with a free two-page report after plugging in information about your property.
  • Free tax calculators: In addition to the cost seg calculator, KBKG also has free calculators for ERC, R&D, and R&D payroll tax.
  • Tax software: KBKG has three paid software solutions for cost segregation, R&D tax credits, and 481(a) adjustments.
  • Educational Resources: KBKG helps taxpayers and professionals stay informed, from tax insights and articles to webinars for CPE credits.

How KBKG's Cost Segregation Process Works

To get started with a KBKG cost segregation study, fill out the online proposal request form. Simply select the service you’re interested in, and provide basic information about your property (such as building type, square footage, and address) and some information about yourself to get started with your free analysis.

Before you fill out the form, you can also use the free cost segregation calculator, which provides you with an estimate and a two-page report. Please note that this isn’t a guarantee of tax savings and should only be used to get an idea of whether cost segregation is the right strategy for you.

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Omega Accounting Solutions: Best For Business Tax Credits & Incentives

Omega Accounting Solutions

Total Rating 4.3
Fees3.0

Features5.0

Refund Process & Timeline4.3

Customer Service4.4

User Reviews4.9



Pros

  • Free initial consultation
  • Excellent customer support
  • Additional tax & business services available
  • Excellent public reputation

Cons

  • Nontransparent fees
  • No knowledge base or help center

Why We Chose Omega Accounting As The Best Cost Segregation Company For Multiple Tax Credits

With 15 years of tax experience, Omega Accounting Solutions offers several services surrounding tax credits and incentives to help you get the most out of your next tax return. From cost segregation to ERC, Omega provides free consultations and easy, secure processes for claiming deductions and credits. Omega also offers many other business and financial services you won't find with other cost segregation companies. Omega does all of these things and does them well, as indicated by the many positive reviews from satisfied clients.

Omega Accounting Solutions Tax Services

Omega Accounting Solutions provides cost segregation services, starting with a free initial consultation. If you decide to use Omega Accounting Solutions, your property analysis will be completed by an experienced expert who complies with all tax and building regulations at federal and state levels.

In addition to cost segregation studies, Omega Accounting Solutions also specializes in:

Omega Accounting Solutions Features

Here’s why you should consider working with Omega Accounting Solutions:

  • Expert cost segregation: Following your consultation, you’ll work with an experienced specialist with a tax and engineering background to help you get the most out of cost segregation while remaining compliant with IRS guidelines.
  • Free feasibility analysis: Easily find out if you qualify for cost segregation with a free initial consultation.
  • Additional tax credits & incentives: Beyond cost segregation, Omega can help you claim R&D credits, ERC, and other tax benefits.
  • Additional business services: Omega is a one-stop solution for all of your tax, finance, and business needs, including fractional CFO services, bookkeeping, 1099 filing, and business intelligence reporting.
  • Excellent support: Omega has received several five-star reviews from clients that praise the company’s responsiveness, knowledge, and easy, straightforward processes.

How Omega Accounting Solutions' Cost Segregation Process Works

Omega Accounting Solutions works with all property owners and real estate investors who qualify for tax segregation. You can find out if you’re eligible by filling out a quick form with your name, email address, and phone number to set up your free initial consultation.

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Engineered Tax Services: Best For Larger Businesses

Engineered Tax Services

Total Rating 4.2
Fees3.8

Features4.6

Customer Service4.9

User Reviews3.7



Pros

  • Free feasibility analysis
  • Additional tax services available

Cons

  • Nontransparent fees
  • Several customer service complaints

Why We Chose Engineered Tax Services As The Best Cost Segregation Company For Large Businesses

Similar to Omega Accounting Services, Engineered Tax Services offers cost segregation and a wide array of other specialty tax services, including ERC and R&D claims. Engineered Tax Services uses an engineering-based approach to cost segregation studies and has a proven track record of working with large businesses including Hilton, Marriott, and Toyota.  Given its level of experience in the specialty tax space and the slew of positive customer reviews, businesses of all sizes -- especially large businesses or investors with multiple prices -- should feel comfortable utilizing ETS for its cost segregation and tax credit services.

Tax Services Provided By Engineered Tax Services

Engineered Tax Services provides cost segregation studies for a variety of industries and properties of all sizes. The company boasts many case studies, with a number of them based on multi-million dollar properties around the nation.

In addition to cost segregation services, you can also count on ETS for:

  • ERC
  • R&D tax credit
  • Work Opportunity Tax Credits (WOTC)
  • Wireless Infrastructure Technology (WIT)
  • Energy tax credits & deductions
  • Grant services
  • Other business tax credits & deductions

Engineered Tax Services Features

Engineered Tax Services has several standout features that make it an obvious choice for cost segregation and tax credits, including:

  • Free feasibility analysis: You can see if you qualify for cost segregation with a free, no-obligation feasibility analysis.
  • Free analysis for additional tax credits: While you’re working with ETS, you can also find out if you qualify for ERC, WIT, R&D, and other credits and incentives for no cost.
  • Educational resources: ETS, by far, has one of the biggest catalogs of resources available for business owners and investors. These resources include numerous case studies, podcasts, webinars, eBooks, and more to help educate clients.
  • Excellent customer support: Engineered Tax Services has several reviews and testimonials praising the company for its knowledgeable and responsive reps and its detailed and accurate cost segregation reports.

How Engineered Tax Services' Cost Segregation Process Works

ETS states that individuals, corporations, trusts, or partnerships that have purchased or built real estate in the last 15 years may qualify for cost segregation.

You can find out if your property qualifies by requesting your free cost segregation analysis. This can be done through a form on the ETS website that requests personal information such as your name, email, and phone number, as well as basic information about the project, including the date placed in service, the cost basis for the building, square footage, and entity type.

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CSSI: Best Cost Segregation Studies For Small Properties

Total Rating 3.8
Fees3.8

Features3.7

Customer Service4.5

User Reviews3.9



Pros

  • Free initial consultation
  • Strong focus on compliance
  • Completed 45,000+ cost segregation studies

Cons

  • Doesn’t offer additional tax services or resources
  • Nontransparent pricing
  • Limited customer support avenues

Why We Chose CSSI As The Best Cost Segregation Company For Small Properties

While CSSI doesn't offer numerous tax services, it puts its focus solely on cost segregation and has completed over 45,000 cost segregation studies to date. A free initial property analysis is available to help you realize tax benefits and receive a quote for CSSI's affordable services. While CSSI can handle large cost segregation studies, the company has lower property value limits than other companies and works with commercial properties valued from $200,000 to $1.5 billion.

CSSI Tax Services

Unlike some of the other companies on this list, CSSI does not provide additional tax services. CSSI specializes solely in cost segregation studies.

CSSI Features

CSSI doesn’t have the bells and whistles you’ll find with some other companies, but it does have a strong reputation for its engineering-based cost segregation studies. Features worth noting include:

  • Free feasibility analysis: Find out if you qualify with a no-cost, no-obligation feasibility analysis.
  • Compliance focused: CSSI puts an emphasis on compliance and ensures that all 13 points outlined in the tax code are hit in each cost seg study.
  • Cost segregation resources: CSSI has CPE presentations, articles, and cost segregation case studies to educate its clients.

How CSSI's Cost Segregation Process Works

Get started with CSSI by requesting a free property analysis. Simply fill out a short form that includes personal information and basic info about your property (i.e., property type and date acquired) to receive your no-cost, no-obligation analysis.

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Duffy+Duffy: Best For LEED-Certified Buildings

Total Rating 3.4
Fees3.8

Features3.7

Customer Service4.0

User Reviews0.0



Pros

  • Free initial analysis
  • Referral program available
  • Experienced team performs studies based on case law & IRS guidelines

Cons

  • Doesn’t offer additional tax services
  • Nontransparent pricing
  • Lack of client reviews

Why We Chose Duffy+Duffy As The Best Cost Segregation Company For LEED-Certified Buildings

Performing cost seg studies since 2002, Duffy+Duffy is an established company that focuses its attention solely on performing cost segregation studies without the distractions of other tax services. Duffy+Duffy has experience with LEED-certified properties, helping owners of sustainable businesses reduce their tax liabilities without overlooking depreciable costs. You won't find this kind of experience with just any cost segregation company, which is why Duffy+Duffy made this list.

Duffy+Duffy Tax Services

Duffy+Duffy specializes in cost segregation studies. The company does not provide additional tax services.

Duffy+Duffy Features

Duffy+Duffy keeps it simple when it comes to cost segregation. However, there are a few good reasons why the company has been in business for decades, including:

  • Free feasibility analysis: Receive a free estimate of tax benefits and a fee quote if you decide to have the study performed.
  • LEED-certified projects: Duffy+Duffy is experienced in performing cost segregation studies for Leadership in Energy and Environmental Design (LEED) certified projects.
  • Referral program: Contact Duffy+Duffy to learn more about its referral partnership program.

How To Duffy+Duffy's Cost Segregation Process Works

You can request a free feasibility analysis through Duffy+Duffy’s online form. The short form takes less than five minutes to complete and requests basic personal information, as well as information about your property.

Duffy+Duffy may request additional information and documentation that can be uploaded through a secure portal.

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Madison SPECS: Best For Remote Cost Segregation Studies

Total Rating 3.8
Fees5.0

Features3.5

Customer Service4.9

User Reviews1.0



Pros

  • Free feasibility analysis
  • Smart Tour cost segregation kit
  • Uses tax and engineering approaches

Cons

  • Doesn’t offer additional tax services
  • Nontransparent pricing
  • Lack of client reviews

Why We Chose Madison SPECS As The Best For The Best Remote Cost Segregation Studies

Madison SPECs offers a unique Smart Tour where an on-site employee works with a Madison SPECS expert to perform a remote cost segregation study. Utilizing video and digital equipment, this Smart Tour is non-intrusive, offers faster turnaround times, and provides a video trail for the IRS. Since its founding, the company has helped clients of all sizes lower their tax liabilities by over $3 billion.

Madison SPECS Tax Services

Madison SPECS specializes in cost segregation for investment and commercial properties of all types.

Madison SPECS Features

These standout features can help you decide if Madison SPECS is the right cost segregation company for you:

  • Free initial analysis: A free initial analysis can determine if you’re eligible for cost segregation.
  • Smart Tour: The Smart Tour kit is used for remote cost segregation studies with faster turnaround times and other benefits.
  • In-house experts: Madison SPECS employs 60+ in-house professionals, including engineers.

How Madison SPECS' Cost Segregation Process Works

You can get started with Madison SPECS by filling out a contact form for a free quote. The form is quick and easy to complete — simply enter your name, email address, phone number, property address, and a message with any other details you need to share.

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Our Methodology For Choosing The Best Cost Segregation Companies

We looked at over 12 companies that specialize in cost segregation, including companies that only offer cost segregation services as well as specialty tax firms that specialize in multiple tax credits and incentives for businesses.

We considered factors including customer reviews, services offered, the availability of a free consultation, the quality of customer support, and overall industry reputation to ensure only the best, most reputable options made our list.

What Is Cost Segregation?

Cost segregation is a tax strategy for property owners and real estate investors. Without cost segregation, property is depreciated using the following timelines:

  • Commercial Properties: 39 years
  • Residential Properties: 27.5 years

Using cost segregation, components of the building are assessed and sorted into four categories:

  • Land assets
  • Buildings & structures
  • Land improvements
  • Personal property

After categorization, certain building components can be depreciated on an accelerated schedule of five, seven, or 15 years. This frontloading of depreciation lowers tax liability and (in some cases) may even result in a tax refund.

Components that are assessed and categorized may also be eligible for bonus depreciation, resulting in additional tax benefits.

In order to use this tax strategy, a cost segregation study by an experienced team of professionals must be performed.

Who Qualifies For Cost Segregation?

Anyone who has purchased, constructed, or remodeled a commercial or residential investment property may qualify for cost segregation. This could be anyone from a retail store owner to a landlord who rents out a single-family home.

Primary residences do not qualify for cost segregation. In some cases, a second home may qualify provided certain conditions are met.

Reputable cost segregation companies offer a free feasibility analysis. During this step, an expert will perform an analysis of the property and your tax situation to determine if you qualify for cost segregation. Following this analysis, you’ll receive an estimate of tax benefits as a result of a cost segregation study, as well as a quote for study fees.

Some companies may have limitations on the properties they work with (i.e., the property must be worth a minimum amount), so make sure to do your research or simply ask about these requirements before moving forward.

What Is A Cost Segregation Study?

A cost segregation study is performed by an experienced team of professionals that may include accountants, engineers, estimators, and tax experts. While it may be possible to do a cost segregation study yourself, we don’t recommend it since the process is complex and mistakes can result in big penalties from the IRS.

A study should be completed on any commercial or investment property that was recently acquired, built, or remodeled. While it’s advised to complete a study in the first year the property is put into service, look-back studies can be performed to help you retroactively claim depreciation.

How Do Cost Segregation Studies Work?

Before hiring a cost segregation company, it’s important to understand how a cost segregation study works.

During a cost segregation study, the property will be carefully analyzed and assessed. Building components will be sorted into four categories, which will determine the accelerated depreciation schedule for each component. These studies can be performed with an on-site team or remotely using various types of technology.

Once the property has been analyzed and all components have been categorized, you will receive a report. These reports (which are typically 30+ pages) include a list of categorized assets, photographs of the property, and references that substantiate the study. This information can then be used to report accelerated depreciation on your tax return.

What Costs Can Be Written Off On A Cost Segregation Study?

During a cost segregation study, building components are assessed and categorized into four categories. These categories determine the accelerated depreciation schedule used to write off each component.

The four categories of cost segregation are as follows:

  • Personal property: Personal property depreciates over five or seven years. Examples of personal property include appliances, signage, furniture, office equipment, and machinery.
  • Buildings & structures: Residential buildings and structures depreciate over 27.5 years if it’s a residential property or 39 years if it’s commercial property. This category includes the building itself, along with structural components such as roofs, concrete foundations and footings, floors, ceilings, windows, and doors.
  • Land improvements: Land improvements depreciate over 15 years. Land improvements include landscaping, exterior lighting, parking lots, curbing, sidewalks, and fountains.
  • Land assets: Land assets include land as well as site work used to prepare the land before construction. Land assets are not depreciable.

Is A Cost Segregation Study Worth It?

Should you do a cost segregation study? Before deciding, there are a few things to keep in mind.

One of the biggest drawbacks of cost segregation is its associated costs. On the lower end, cost segregation studies cost around $5,000. For larger, more complex properties, costs only continue to rise and can surpass $15,000.

While this upfront cost may be a deterrent for some property owners, the tax benefits that come from segregating costs can easily exceed this amount, with some owners seeing tens or hundreds of thousands of dollars in savings in just a few years.

However, cost segregation isn’t for everyone. Your property has to qualify, and if it does, you need to weigh out the benefits and drawbacks of cost segregation.

If you’re still on the fence, you can use our cost segregation calculator to see how much you could save or reach out to a reputable cost segregation company (start with the six on this list!) for a free feasibility analysis, which gives you a better idea of how cost segregation could benefit you.

How To Choose A Cost Segregation Company

Knowing how to choose a cost segregation company can prevent a lot of headaches (and potential IRS penalties) in the future. Doing your research is the most important step in choosing a cost segregation company. Look for reputable companies (like those on this list), read user reviews, and don’t be afraid to reach out to ask questions.

Take advantage of any free feasibility analysis that is offered by companies that spark your interest. Not only will this provide you with a quote for fees, but it will also give you an idea of the tax savings available to you.

Keeping an eye out for red flags is just as important when looking for a cost segregation company. If you’re asked for upfront fees, asked to pay contingent fees, or just have a feeling that something is off, keep searching. A cost segregation study is a big investment, and you want to make sure you pick the right company for the job.

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Erica Seppala

Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.