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) |
The One Big Beautiful Bill and Reinstatement of Bonus Depreciation While the Tax Cuts and Jobs Act of 2017 was originally scheduled to sunset, starting December 31, 2022, On July 4, 2025, The One Big Beautiful Bill was signed into law permanently reinstating 100% bonus depreciation. Qualifying assets put into service after January 19, 2025 can now be written off immediately, which keeps cost segregation a valuable strategy for maximizing deductions.
Updated Bonus Depreciation Timeline
- Sept. 28, 2017 – Dec. 31, 2022 100% bonus depreciation available under the Tax Cuts and Jobs Act (TCJA).
- 2023 80% bonus depreciation (first step in the scheduled phase-down).
- 2024 60% bonus depreciation.
- Jan. 1 – Jan. 19, 2025 40% bonus depreciation (final phase of the TCJA phase-down).
- Jan. 20, 2025 and onward 100% bonus depreciation permanently restored
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.
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
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.