Cost segregation is a powerful tax strategy that allows property owners to accelerate depreciation and significantly reduce their tax burden. Whether you’re managing commercial real estate, multifamily properties, or investment portfolios, partnering with the right firm can maximize your ROI and cash flow.
With so many providers claiming expertise, it’s crucial to choose one with a track record of accurate analysis, IRS compliance, and real results. In this guide, we’ve reviewed and ranked the 7 best cost segregation companies for 2025, so you can confidently select the firm that best fits your financial goals.
7 Best Cost Segregation Companies
- Remote Cost Seg – Best Cost Segregation Company Overall
- Omega Accounting Solutions – Best for Customer Support
- KBKG – Best for Additional Tax Credits & Incentives
- Engineered Tax Services – Best for Large Businesses & Properties
- CSSI – Best for Small Businesses & Properties
- Duffy & Duffy – Best for LEED-Certified Projects
- Madison SPECS – Best for Remote Cost Segregation Studies
Remote Cost Seg – Best Cost Segregation Company Overall
Remote Cost Seg is a leading cost segregation company known for its expertise, innovative technology, client-focused approach, and proven success record. With a team of experienced professionals, advanced proprietary software, and a commitment to personalized service, the company consistently delivers substantial tax savings for clients.
Remote Cost Seg offers competitive pricing and top-tier services, ensuring exceptional value for clients’ investments. Their cost-effective solutions provide significant ROI, making cost segregation accessible to many property owners and investors.
Understanding the unique needs of each property and client, the company tailors its services accordingly. The company provides detailed consultations to help clients grasp potential tax savings and the methodology behind their cost segregation studies.
Pros
- Highly experienced team with multidisciplinary expertise
- Uses advanced software and 3D modeling for accurate assessments
- Offers personalized service with transparent communication
- Proven track record of delivering substantial tax savings
- Provides an array of tax-related services
- High value for investment, maximizing ROI
- Offers educational resources and client support
Cons
- Initial costs can be higher but are often offset by significant first-year tax savings
- Detailed analyses may require time to complete
Remote Cost Seg Features
- Expert Team: Specialists with backgrounds in engineering, tax law, and real estate
- Proprietary Software: Uses advanced technology for precise cost segregation analysis
- 3D Modeling: Enhances asset identification and reclassification accuracy
- Detailed Reporting: Delivers comprehensive, IRS-compliant reports
- Fixed Asset Review: Additional services to optimize tax savings
- Disposition Studies: Assists in asset disposal and related tax implications
- Energy-Efficient Tax Incentives: Identifies opportunities for further savings
- Client Education: Offers webinars, seminars, and resources to empower clients
- Competitive Pricing: Provides exceptional value
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Omega Accounting Solutions – Best for Customer Support
With 15 years of experience in tax-related services, Omega Accounting Solutions offers many services focused on maximizing your tax benefits. Specializing in cost segregation, Employee Retention Credits (ERC), and more, they provide free consultations and a secure, straightforward process for claiming deductions and credits.
Omega sets itself apart by offering additional business and financial services beyond what typical cost segregation companies provide. As a result, it has received high praise in numerous client reviews.
Pros
- Offers a free feasibility analysis to assess cost segregation eligibility
- Known for exceptional customer support
- Offers a wide range of additional tax and business services
- Holds an excellent reputation with the public
Cons
- Lacks transparent fee structures
- Doesn’t feature a knowledge base or help center
Omega Accounting Solutions Features
- Expert Cost Segregation: Collaborate with specialists in tax and engineering to ensure maximum benefits while adhering to IRS guidelines.
- Free Feasibility Analysis: Assess eligibility for cost segregation with no upfront costs.
- Additional Tax Credits & Incentives: Access services such as R&D credits, ERC, and tax incentives.
- Comprehensive Business Services: From fractional CFO services to bookkeeping and business intelligence reporting, Omega offers complete solutions for business needs.
- Outstanding Support: Omega’s dedication to customer service shines through in its numerous five-star reviews, highlighting its responsiveness, expertise, and efficient processes.
>> Expert Cost Segregation With Omega >>
KBKG – Best for Additional Tax Credits & Incentives
KBKG secures its place among top providers with a remarkable range of resources. They offer free tax calculators, tax software, an extensive selection of tax credit services, and deep industry expertise, making them a standout choice for cost segregation services.
Known for exceptional customer support, KBKG has earned numerous positive online reviews, a rarity in the cost segregation field. Clients frequently commend KBKG’s team for their professionalism, responsiveness, and efficient, thorough approach to cost segregation studies.
KBKG serves property owners and businesses across various industries with cost segregation services. They offer other valuable services, including:
- Employee Retention Credits (ERC)
- Research & Development (R&D) Tax Credits
- Fixed Asset Reviews
- Green Building Tax Incentives
- Interest Charge Domestic International Sales Corporation (IC-DISC)
Pros
- Provides a free feasibility analysis to determine cost segregation eligibility
- Recognized for outstanding customer service
- Provides tax benefit calculators
Cons
- Lacks a transparent fee structure
- Doesn’t offer live chat support
Omega Accounting Solutions Features
Here’s why KBKG is highly regarded among top cost segregation companies:
- Free Feasibility Analysis: Assess your eligibility for cost segregation at no initial cost.
- Free Cost Segregation Calculator: A unique tool that generates a two-page report based on your property’s details, making it one of the market’s most innovative and practical features.
- Comprehensive Tax Calculators: Besides the cost segregation calculator, KBKG provides calculators for ERC and R&D credits, including a specialized R&D payroll tax calculator.
- Specialized Tax Software: KBKG offers three paid software solutions for cost segregation, R&D tax credits, and 481(a) adjustments, boosting accuracy and efficiency in tax processes.
- Educational Resources: KBKG supports taxpayers and professionals with a library of tax insights, articles, and webinars, including those that qualify for Continuing Professional Education (CPE) credits.
>> Expert Cost Segregation With KBKG >>
Engineered Tax Services – Best for Large Businesses & Properties
Engineered Tax Services (ETS), similar to Omega Accounting Services, provides a comprehensive range of specialty tax services, including cost segregation, Employee Retention Credits (ERC), and R&D claims. With an engineering-based approach to cost segregation studies, ETS has a proven track record of working with major corporations such as Hilton, Marriott, and Toyota.
With extensive experience in the specialty tax field and numerous positive customer reviews, ETS is well-suited for businesses of all sizes, huge enterprises, and investors who manage multiple properties and seek cost segregation and tax credit services.
ETS conducts cost segregation studies across diverse industries and property sizes. Their portfolio includes many case studies featuring multi-million dollar properties nationwide.
Pros
- Offers a free, no-obligation feasibility analysis for cost segregation
- A wide range of additional tax services are available
Cons
- Fees lack transparency
- Some complaints regarding customer service
Engineered Tax Services Features
Engineered Tax Services stands out with several key features that make it a leading choice for cost segregation and tax credits:
- Free Feasibility Analysis: Determine your eligibility for cost segregation with a no-obligation, complimentary analysis.
- Free Analysis for Additional Tax Credits: As an ETS client, you can assess your eligibility for credits such as ERC, WIT, R&D, and other incentives at no extra cost.
- Educational Resources: ETS provides a comprehensive library of resources, including case studies, podcasts, webinars, and eBooks, to educate business owners and investors with valuable insights.
- Exceptional Customer Support: Engineered Tax Services has received high praise in reviews for its knowledgeable and responsive team and detailed cost segregation reports.
>> Expert Cost Segregation With Engineered Tax Services >>
CSSI – Best for Small Businesses & Properties
While CSSI may not offer a wide range of tax services, it’s a dedicated specialist in cost segregation, and over 45,000 studies have been completed.
CSSI provides a free initial property analysis to help clients gauge potential tax benefits and receive a quote for its competitively priced services. Known for handling large-scale cost segregation studies, CSSI typically works with commercial properties valued from $200,000 to $1.5 billion.
This focused approach sets CSSI apart from other companies offering broader tax services, positioning it as a true specialist in cost segregation studies.
Pros
- Provides a free, no-obligation feasibility analysis for cost segregation
- Strong emphasis on compliance
- Extensive experience with over 45,000 cost segregation studies completed
Cons
- Lacks additional tax services and educational resources
- Pricing transparency is limited
- Limited options for customer support
CSSI Features
Although CSSI may not offer the extensive features of some competitors, it’s known for its engineering-based approach to cost segregation studies. Key features include:
- Free Feasibility Analysis: Evaluate eligibility for cost segregation with a complimentary, no-obligation feasibility analysis.
- Compliance-Focused Approach: CSSI prioritizes compliance, ensuring each study aligns with all 13 points of the tax code.
- Cost Segregation Resources: While limited, CSSI offers CPE presentations, articles, and case studies on cost segregation to educate clients.
>> Expert Cost Segregation With CSSI >>
Duffy & Duffy – Best for LEED-Certified Projects
Since 2002, Duffy & Duffy has specialized exclusively in cost segregation studies, dedicating its expertise to this area without the distractions of other tax services. The firm is especially recognized for working with LEED-certified properties, helping sustainable business owners reduce tax liabilities while carefully managing depreciable costs.
This unique focus on cost segregation sets Duffy & Duffy apart from competitors. Committed to this niche, the company remains dedicated solely to cost segregation studies, steering clear of other tax services.
Pros
- Offers a free feasibility analysis and cost estimate
- Features a referral program
- Boasts a team with expertise in case law and IRS-compliant studies
Cons
- Doesn’t offer additional tax services
- Lacks transparent pricing information
- Limited availability of client reviews
Duffy & Duffy Features
While Duffy & Duffy keeps its services straightforward, focusing only on cost segregation, several factors explain its enduring success in the industry:
- Free Feasibility Analysis: Prospective clients receive a no-cost estimate of potential tax benefits and a detailed fee quote for the study.
- LEED-Certified Projects: Duffy & Duffy has substantial experience conducting cost segregation studies for properties with Leadership in Energy and Environmental Design (LEED) certification.
- Referral Program: The firm offers a referral partnership program, providing benefits for both the referrer and the referred.
>> Expert Cost Segregation With Duffy & Duffy >>
Madison SPECS – Best for Remote Cost Segregation Studies
Madison SPECS offers a unique solution with its Smart Tour, where an on-site employee works alongside a Madison SPECS expert to perform a remote cost segregation study using video and digital technology.
This innovative method is non-intrusive, speeds up the process, and provides a video record for IRS documentation. Since its launch, Madison SPECS has helped clients reduce their tax liabilities by over $3 billion, specializing in cost segregation for various investment and commercial properties.
Pros
- Provides a free initial analysis to determine cost segregation eligibility
- Smart Tour, cost segregation kit, provides a modern, efficient approach
- Combines tax expertise with engineering principles for optimal results
Cons
- Services are limited to cost segregation only
- Pricing transparency is lacking
- Limited availability of client reviews
Madison SPECS Features
- Free Initial Analysis: Madison SPECS provides a complimentary assessment to determine your eligibility for cost segregation benefits.
- Smart Tour: This unique kit allows for remote cost segregation studies, ensuring a quicker process with added benefits like a video record for IRS compliance.
- In-House Experts: The company employs over 60 in-house professionals, including engineers specializing in technical and regulatory aspects of cost segregation.
>> Expert Cost Segregation With Madison SPECS >>
Methodology for Choosing The Best Cost Segregation Companies
We reviewed over a dozen firms specializing in cost segregation, including dedicated cost segregation providers and specialty tax firms offering a variety of tax credits and incentives for businesses.
To identify the top and most reputable options for our list, we considered multiple factors, such as customer feedback, the scope of services offered, the availability of a free consultation, the quality of customer support, and overall industry reputation.
Best Cost Segregation Companies – Buyer’s Guide
Sub-Services and Features
Explore specialized Cost Segregation services and the unique advantages each offers:
- Cost Segregation Analysis: Identifies eligible assets precisely, lowering your tax burden while boosting cash flow.
- Newly Constructed Buildings: Applies cost segregation to new builds, unlocking immediate tax savings with bonus depreciation.
- Existing Buildings: Works for existing properties, allowing you to catch up on missed depreciation from previous years.
- Purchase Price Allocation: Our experts strategically allocate building purchase costs, optimizing cash flow and tax benefits.
- Leasehold Improvements: Highlights leasehold enhancements for accelerated depreciation, cutting down taxes, and enhancing cash flow.
- Real Property Analysis: Assesses property assets for cost segregation eligibility, leveraging bonus depreciation for tax savings.
- Cost Segregation Study Review: They review your study to ensure it meets IRS standards, offering confidence in its accuracy and compliance.
- Recovery Periods: Categorizes assets into shorter recovery periods, enabling greater tax savings, cash flow improvement, and lower tax obligations.
What Is Cost Segregation?
Cost segregation is a strategic tax practice that property owners and real estate investors use to accelerate depreciation. Commercial properties normally depreciate over 39 years, while residential properties depreciate over 27.5 years. Cost segregation breaks down the property into four categories: land assets, buildings and structures, land improvements, and personal property.
This method allows certain building components to be depreciated on an accelerated schedule of five, seven, or 15 years. This approach can effectively reduce tax liabilities and potentially lead to tax refunds. Some components may also qualify for bonus depreciation, offering additional tax advantages. A detailed cost segregation study by seasoned professionals is necessary to implement this strategy.
Who Qualifies for Cost Segregation?
Cost segregation is available to anyone who has purchased, built, or renovated a commercial property or residential investment property, from retail store owners to landlords renting out properties. It doesn’t apply to primary residences, and a second home may only qualify under specific conditions.
Reputable cost segregation firms typically offer a free feasibility analysis to assess eligibility. This analysis reviews the property and the owner’s tax situation to determine whether cost segregation is viable. It also includes an estimate of potential tax benefits and a quote for conducting the study.
What is a Cost Segregation Study?
A cost segregation study is typically performed by a team of professionals, including accountants, engineers, estimators, and tax experts. Due to the study’s complexity and the risk of severe IRS penalties for errors, a DIY approach isn’t recommended.
Ideally, these studies are conducted in the first year a property is placed in service. However, they can also be done retroactively through look-back studies to claim depreciation from previous years.
How Do Cost Segregation Studies Work?
Understanding how the process unfolds before hiring a firm for the job is key to getting the most out of a cost segregation study.
In a cost segregation study, every part of the property gets a thorough review. Each asset is sorted into one of four categories, which allows for setting up a tailored depreciation schedule. This detailed sorting enables faster depreciation for many components, which can lead to significant tax savings. Depending on the setup, the study can occur on-site or remotely, using advanced tools to inspect and classify each part.
Once the study wraps up, you’ll receive an in-depth report, often over 30 pages. These reports break down each asset into categories, provide property photos, and include supporting documentation to validate the findings. This comprehensive report plays a crucial role in claiming accelerated depreciation on tax returns, giving you a straightforward way to maximize your tax benefits.
What Costs Can Be Written Off On a Cost Segregation Study?
In a cost segregation study, the parts of a building are examined and divided into four categories, each with a unique depreciation timeline that speeds up the process of writing off these items.
The four main cost segregation categories are:
- Personal Property: This covers items like appliances, signs, furniture, office gear, and machinery. These items wear out in five or seven years, depending on the type.
- Buildings & Structures: This category includes the main building and essential parts like roofs, foundations, floors, ceilings, windows, and doors. Residential buildings depreciate over 27.5 years, while commercial ones last a bit longer, 39 years, to be exact.
- Land Improvements: Things like landscaping, outdoor lighting, parking areas, sidewalks, and fountains fall here. These typically depreciate over 15 years.
- Land Assets: This part includes the land and any groundwork needed to prepare it. Unlike other categories, land doesn’t depreciate.
Is a Cost Segregation Study Worth It?
A cost segregation study can be worth it if you’re looking to maximize tax savings on property investments. Breaking down property into specific components can accelerate depreciation on parts like fixtures and landscaping, reducing your taxable income sooner.
This means more cash flow in the short term. However, these studies come with costs and are most beneficial for more significant properties or high-value investments. Consulting with a tax professional can help determine if the savings justify the expense in your particular case.
>> Unlock Tax Savings Today With Remote Cost Seg >>
Best Cost Segregation Companies – FAQs
Is a Cost Segregation Study Worth the Cost?
Absolutely. A cost segregation study can unlock substantial tax savings and improve cash flow for commercial property owners, often making it a valuable investment.
Will a Cost Segregation Study Trigger an IRS Audit?
Not necessarily. A cost segregation study doesn’t automatically lead to an audit, but ensuring it aligns with IRS guidelines and includes solid documentation can strengthen your position if an audit occurs.
What Is Bonus Depreciation?
Bonus depreciation is a tax benefit that allows businesses to expense a large portion of the cost of qualifying property in the year it is put into service.
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Conclusion
Choosing the right cost segregation firm can have a significant impact on your tax strategy and long-term financial success. The companies featured in this guide offer proven expertise, compliance-ready studies, and tailored solutions for property owners and investors.
Many now offer Remote Cost Seg services, allowing you to benefit from expert analysis without the need for on-site visits, saving time and money. Whether you’re aiming to improve cash flow or reduce taxable income, these trusted providers can help you maximize benefits in 2025. Take the time to evaluate your options and choose the firm that best aligns with your goals and property type.