FAQs

Cost segregation is an IRS-approved tax planning strategy. An engineering-based analysis reclassifies building components into shorter depreciation lives (5, 7 and 15 years instead of 27.5 or 39 years), so you claim deductions sooner and lower your taxes in the early years of ownership.

Most income-producing properties qualify, including short-term rentals, single-family and multifamily rentals, condos, office buildings, retail centers, warehouses, hotels and medical facilities. Personal residences do not qualify. Cost Seg EZ's DIY Study covers residential properties (excluding condos) with a purchase price under $1M; the Engineer Reviewed study covers any residential property with a purchase price under $1M.

Yes, for the right property. The DIY Study is built for small single-family homes and multifamily rentals: residential (excluding condos), purchase price under $1M and minimal renovations. If you want an expert's sign-off, the Engineer Reviewed study adds review by our engineering team, and founder Andrew Kohrs reviews every Engineer Reviewed report. For larger, commercial or heavily renovated properties, choose a Fully Engineered study from our sister brand, MVO Cost Segregation. The IRS Cost Segregation Audit Techniques Guide describes what a quality study includes.

Investors can recover up to 10% of a property's purchase price in Year 1 tax savings. Every savings figure is illustrative: results vary by property type, cost basis, tax bracket and applicable law. Get a free estimate before you commit.

This is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional.

Cost Seg EZ is MVO Cost Segregation's sister brand: a web-based tool that generates residential cost segregation studies from engineering-based models and construction cost data. MVO's team brings 25+ years of cost segregation engineering experience, has completed 3,000+ studies and has analyzed $7B+ in cost basis. Enter your property details and the DIY Study is generated instantly. An Engineer Reviewed study adds review by our engineering team and takes 3-5 business days.

DIY Studies start at $595 per property and Engineer Reviewed studies start at $895 per property, for residential properties with a purchase price under $1M. Fully Engineered studies from our sister brand, MVO Cost Segregation, start at $2,250 for residential properties; commercial and complex properties are scoped individually.

It depends on your property and your desired level of service. We are proud to offer a several options so you can choose.

DIY studies can be generated instantly for $595 per property. This option is available for residential properties (excluding condos) with a purchase price < $1 million and minimal post-acquisition improvements.

Engineer-Reviewed studies takes DIY and adds a detailed review by our experienced engineering team to ensure maximum benefits and accuracy for $895 per property. This option is available for all residential properties (including condos) with a purchase price < $1 million and post-acquisition improvements up to $100,000.

We also offer Fully Engineered studies, under our sister brand MVO Cost Seg. This is our core business. This is for larger residential properties and all commercial properties. The pricing depends on the size and scope of the project and starts at $2,250. Get a personalized proposal here.

You can learn more about our different offerings here.

The DIY Study covers residential properties (excluding condos) with a purchase price under $1M and minimal renovations. The Engineer Reviewed study covers any residential property, including condos, with a purchase price under $1M and renovations under $100,000. For other property types and sizes, our sister brand MVO Cost Segregation offers Fully Engineered studies.

Cost Seg EZ charges a flat price per property instead of billing for an engineer's time, so an owner with a single rental can use cost segregation. The DIY Study is generated instantly once you enter your property details, and the Engineer Reviewed study adds an expert's sign-off. For complex properties, MVO's Fully Engineered study includes an engineer-led virtual or in-person site inspection.

You will need basic details about your property: the address, square footage, year built, construction quality, property condition, flooring types, kitchen cabinets and appliances, finishes and exterior improvements.

If you've done significant renovations or are ordering an Engineer Reviewed study, an appraisal or inspection report is very helpful.

We recommend filling out the form on a computer rather than a phone or tablet.

Hover over the black "i" icons in the form for tips, watch our how-to video for step-by-step guidance, or read the detailed descriptions of each input.

If you still have questions, contact us or book a free 20-minute consultation.

Yes. You can view a sample Cost Seg EZ report to see everything your study includes to implement cost segregation on your tax return.

A properly prepared, audit-defensible cost segregation study does not increase audit risk; poor-quality studies can. Every study we have delivered has been accepted by the IRS. That record describes past studies and does not guarantee the outcome of any future audit.

Yes. Lifetime audit protection is available as a $195 add-on per property for DIY and Engineer Reviewed studies, and it is included at no extra cost with every Fully Engineered study from our sister brand, MVO Cost Segregation. If the IRS questions a covered study, we handle the defense at no additional cost to you.

We only charge extra for audit protection on DIY and Engineer Reviewed studies because we need to review your inputs to ensure they are defensible with the IRS. When we analyze all of the inputs that go into a study, we fully stand behind our work at no extra cost.

Audit protection must be purchased within 14 days of the completion of your cost segregation study. If you do not purchase audit support at the time of your original cost segregation study and require our support in the future, we offer our services on an hourly basis. The cost of this service will be billed at our standard hourly rates at the time the hours are incurred and is subject to the availability of our staff.

Ideally in the same tax year as your acquisition, construction or renovation. Look-back studies done years later are common and can still deliver meaningful savings: you catch up on missed depreciation without amending prior returns.

Yes. A look-back study recaptures missed depreciation using an IRS-approved catch-up method, filed with Form 3115 on your next tax return, without amending prior returns.

Your depreciable basis is generally the purchase price, less land value (land is not depreciable), plus any post-purchase improvements.

Land value can be estimated from an appraisal, a ratio based on the property tax assessment, or vacant land sale comps. If you have questions, reach out to us.

100% bonus depreciation is restored under current legislation for qualifying 5-, 7- and 15-year property. Eligibility depends on when the property was acquired and placed in service, so confirm your percentage with your CPA.

Bonus depreciation has been in existence in many forms since 2001, ranging from 0% to 100% at various times. Determining your bonus depreciation percentage is a multi-step process.

When did you acquire your property (typically, this is the date the transaction closed)? This determines which tax law applies to your property.

• If before September 28, 2017: Please consult your qualified tax advisor or reach out to us with questions.
• If between September 28, 2017 and January 19, 2025: Please see the table below.
• If after January 19, 2025: The applicable bonus depreciation percentage is 100%.

If you acquired your property between September 28, 2017 - January 19, 2025, then the applicable bonus depreciation percentage is based on the date Placed in Service as follows:

The estimator uses reclassification percentages from MVO's cost segregation engineering experience to estimate how much of your property moves into 5-, 7- and 15-year lives. It then applies the depreciation schedules to estimate your Year 1 and first-five-year depreciation compared with straight-line depreciation. Estimates are illustrative and vary by property, cost basis, tax bracket and applicable law.