How much does a cost segregation study cost?

Written by Landon RoseLast updated 2026-10-07Pending review by a Certified Cost Segregation Professional

For a single short-term rental, a cost segregation study typically costs $500–$800 for do-it-yourself software, $1,000–$2,500 for remote engineered studies, and $3,000–$7,000 or more from traditional engineering firms. Seggy charges $1,495 flat for a complete study signed by a Certified Cost Segregation Professional.

What drives the price

Property size and value. More square footage and more items mean more to document and price.
How the study is built. A questionnaire-based estimate costs less than an item-by-item engineering study, but the IRS audit guide gives more weight to detailed, documented methods.
Who signs it. A study reviewed and signed by a credentialed professional holds up better if it's ever questioned.
Extras. Rush delivery, catch-up studies for prior years, and audit defense are sometimes billed separately.

When a study pays for itself

A study usually moves 15% to 35% of a rental's depreciable basis into 5- and 15-year property. On a $600,000 rental with 20% land, that's roughly $72,000–$168,000 that can be deducted in year one under 100% bonus depreciation. At a 32% bracket, the deduction is worth about $23,000–$54,000, far more than the fee, if you can use the loss.

A study usually isn't worth it when the loss is suspended under the passive-activity rules, the property is inexpensive, or you plan to sell soon (depreciation can be recaptured as income on sale).

Questions to ask any provider

Who reviews and signs the study, and what are their credentials?
Is every line item backed by evidence, like photos or invoices?
Does the study reconcile to your purchase price, with land separated?
Is audit support included, or extra?

Sources

This article is general information, not tax advice. Confirm how it applies to you with your tax professional.

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