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Cost Segregation Fee Options

Cost segregation is both the best and the only IRS-approved method of doing accelerated depreciation for your business. Cost segregation is one of the biggest money-savers out there for business property owners but is also too complex to navigate without an expert team to put everything together. When it comes to both launching your cost segregation project and finding a partner, one of the first things you are going to look at is the fee. We at O’Connor offer some of the best fees on the market. We have been doing cost segregation for over 25 years and have over 10,000 of them studies under out collective belts.

Bonus Depreciation / Cost Segregation Fee Options

Commercial/Multifamily Houses
Includes On-Site Inspection Starting at $5,000 (1) Starting at $1,500 (2)
No On-Site Inspection Starting at $2,500 + (3) SStarting at $500+ (4)

Should You Pay for a Site Visit?

The biggest cost and hardest debate you will have in doing cost segregation is to deciding e on if you want a site visit or not. If you choose to have a site visit, one of our expert analysts will come out to visit your commercial property and do their own investigation. This can be beneficial, because of the esoteric nature of many short-life depreciables. Typically, if a site visit is not done, 5-10% of depreciable assets are missed, taking an equal amount away from your savings. This is why most of our clients opt to have an analyst come to their site, as the risks outweigh the meager rewards.

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The usual case involving a site visit will have a cost starting at $5,000. If the property is difficult or there is some higher complexity, then fees will generally increase.
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For rental homes, Airbnbs, and other commercial properties that involve homes, the fee is $1,500 for a site inspection. Discounts can be given to groups.
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Commercial properties can usually be done for $2,500 without a site visit if there is little complexity. However, more advanced properties may only be feasible with an on-site inspection.
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Discounts are available for groups of five or more.

While you usually achieve better results with an on-site inspection, there are options if this is not desirable. There are some tradeoffs to consider when making this decision.

Choosing to Forego a Site Visit

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A lower cost that might be more viable in short-term planning
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Without a site visit, you can expect depreciation to be 5-10% below what you would get with an analyst present.
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If you are diligent in providing evidence to us, much of the reduced depreciation can be made up. This typically includes financial records, videos and photographs of the property, and interviews with employees that know the property well.
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An on-site visit means that you know that every last bit of depreciation was discovered and cataloged.
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You must give us both cautious and accurate information if there is no site visit. If depreciation is overestimated or overstated, it could lead to future IRS problems.

Dealing with the IRS

The IRS wants to ensure that you are paying your fair share. Cost segregation needs to be meticulously planned, or it could lead to complications, including an audit. Thanks to our history and sound methods, we will always stand by our report.

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If you are challenged by the IRS, we will always defend our report. We have never backed down and will always support our work. We have never failed to justify our reports to the IRS.
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If your cost segregation does not result in a lowering of your income taxes, then we will be sure to refund you the full amount that you were charged. This is our guarantee.