How Much Does a Cost Segregation Study Cost? Pricing Guide
Compare study fees with scope, evidence quality, implementation costs, and usable incremental depreciation benefits.
Cost segregation study pricing
Stratum cost segregation studies cost $1 per square foot, with a $2,000 minimum per property. The same rate and minimum apply to each property in a portfolio. Confirm the final written fee and property scope during intake; published prices do not resolve every unusual property or records issue.
| Field | What to record |
|---|---|
| Study rate | $1 per square foot |
| Minimum study fee | $2,000 per property |
| Portfolios | Apply the rate and minimum to each property |
Define the deliverables in writing
The engagement should identify the property and cost periods covered, component analysis, basis reconciliation, schedules, technical explanations, assumptions, and the support available to the return preparer. Ask what form the schedules take and whether the report covers acquired furnishings, later improvements, or partial dispositions.
Confirm who performs and reviews the work, how physical evidence is gathered, how unavailable cost detail is estimated, and whether changes in records affect the fee. The report and the tax return are different deliverables. A quoted study should not be assumed to include every associated tax-planning or filing task.
Confirm what is charged separately
Ask specifically about land valuation work, site visits, historical schedule reconstruction, Form 3115 preparation and filing, amended returns, state depreciation adjustments, and representation in an examination. Guidance or coordination is not the same as preparing and filing a form. Obtain the complete scope before relying on an estimate of total cost.
Delivery targets and complete intake
Published delivery targets have been 14 days for a single property, 10 days for a three-to-five-property portfolio, and 7 days for an expedited enterprise engagement. Confirm availability, when the delivery clock starts, and how missing records or revisions affect the schedule. A complete report requires adequate evidence; a target is not a substitute for resolving a material basis question.
Evaluate the benefit you can use
Ask your preparer to compare proposed depreciation with the deductions available without the study. Include passive activity and other applicable loss limitations, federal and state differences, implementation costs, expected holding period, and sale consequences. A reclassified amount is not an automatic refund or permanent tax saving.
The preparer should also determine whether and when the fee is deductible or capitalized. The economic decision depends on your facts. A purchase-price threshold alone does not establish that a study is worthwhile, and a higher or lower provider price does not prove its report quality.
Before signing
Confirm the property list, complete price, delivery assumptions, evidence requirements, exclusions, revision process, and CPA handoff. Ask who will resolve a disputed classification and what audit-support language actually covers. Keep the accepted proposal with the final report.
References and scope
- IRS Cost Segregation Audit Technique Guide, Publication 5653
- IRS Publication 946: depreciation, ownership, methods, and timing
- IRS Publication 925: passive activity and at-risk considerations
These references explain the underlying tax framework. The checklists and scenarios on this page are editorial tools for gathering evidence, not quotations or asset-specific rulings from the IRS. The audit guide is examination guidance, not an official pronouncement of law or certification of a provider. A return preparer must apply current authority to the particular property, taxpayer, and filing year.
Know the study fee before you book.
Stratum cost segregation studies cost $1 per square foot, with a $2,000 minimum per property.
Calculate your study fee · Estimate potential accelerated depreciation
Discuss your property, study scope and next steps with AE Tax Advisors.