My CPA Says Cost Segregation Is Not Worth It: What Should I Ask?

Ask what makes the economics unattractive

A no can be a useful conclusion. Ask whether the issue is the fee, low remaining basis, deductions you cannot use soon, missing documentation, the implementation burden or a planned sale. Each has a different next step. Do not assume the preparer opposes engineering studies in general when the concern may be specific to this property.

Request the comparison behind the answer

Bring the quoted study fee and ask for a with-study versus without-study comparison. Identify the tax year, incremental deduction, expected usable portion and separately billed work. If the main issue is passive losses, ask what facts would change when those deductions become usable. A study does not establish participation status or automatically create a W-2 offset.

Clarify who will do the work

Ask whether the existing preparer will implement the report, what schedules are needed, and whether an accounting-method change needs separate work. Stratum analyzes the property; a tax professional evaluates implementation. AE Tax Advisors can discuss a separately defined advisory engagement, but the study should not imply that return preparation or representation is included.

Leave with a concrete next step

Record one conclusion: request a proposal, resolve a named fact, reconsider at a later date, or decline. If a second opinion is useful, share the same records and the original concern so the new adviser evaluates the actual issue. Avoid shopping for a promised deduction without resolving the underlying limitations.

Continue with your property decision