Looking for recommendations on cost segregation companies for my investment property?

Cost segregation is definitely worth doing for investment properties if you want to accelerate depreciation. I'm a property investor with several rentals and have used cost segregation studies for the past 5 years. I haven't personally used recostseg, but here's what you should look for in any cost segregation provider: 1) Engineering-based approach (not just accounting), 2) Track record with similar properties, 3) Audit support if the IRS questions your depreciation schedule, and 4) Clear explanation of their methodology. The cheapest option isn't always the best - you want someone who will aggressively but defensibly identify components that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 for residential or 39 for commercial. The tax savings can be substantial.

Just wanted to share my experience with taxr.ai - they didn't do my cost segregation directly but they helped me understand all my property tax documents and depreciation strategies. I uploaded my previous tax returns and property documents at https://taxr.ai and their system pulled out all the real estate specific info I should consider. They identified that I was missing potential deductions and helped me understand if cost segregation would be worth it for my specific situation. Their AI analyzed my property type and purchase price and estimated potential first-year savings before I paid for a full study. Saved me from making an expensive mistake on a property that wouldn't have benefited enough!

Just wanted to follow up - I decided to try taxr.ai after my skeptical questions! I uploaded my investment property docs and tax returns and it was really eye-opening. The analysis showed that my duplex would likely yield about $48,000 in additional first-year deductions with a proper cost seg study. Based on their recommendation, I ended up going with a different cost segregation company than I was initially considering, and the actual study came in with $52,000 in accelerated depreciation. Their recommendation saved me from going with a cheaper company that had questionable methodology. Definitely worth checking out if you're on the fence about cost segregation or which company to use.

I had the absolute worst time trying to reach my accountant during tax season to discuss cost segregation for my investment properties. After three weeks of playing phone tag, I discovered Claimyr (https://claimyr.com) when I was actually trying to reach the IRS to clarify some depreciation questions. After using their service, I got through to an IRS agent in about 15 minutes who answered my questions about what documentation I'd need to support a cost segregation study. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c It was surprisingly helpful because I was able to understand directly from the IRS what they look for when reviewing accelerated depreciation claims. This helped me choose a cost segregation company that met those standards.

I need to eat my words from my previous comment. After being totally skeptical about Claimyr, I was desperate enough to try it when I needed clarification on some cost segregation questions before filing my taxes last month. I was shocked when I got a call back in about 25 minutes with an actual IRS agent on the line. The agent walked me through exactly what supporting documentation I'd need if my accelerated depreciation was ever questioned. This gave me the confidence to proceed with my cost segregation study. For anyone dealing with investment property depreciation questions, it's a game-changer not having to waste half your day on hold. I've now used it twice and both times got through in under 30 minutes.

I used CSP (Cost Segregation Partners) for my 8-unit apartment building and was happy with them. They identified about 35% of the purchase price as 5 or 15-year property, which massively front-loaded my depreciation deductions. Their fee was $4500 which I recovered in tax savings within the first 2 months. The most important thing is making sure they actually have engineers doing the work, not just accountants running numbers. The IRS has specific guidelines about what qualifies as a proper cost segregation study, and you want a company that follows those to the letter.

Has anybody used Kinder Spankneberg & Co for cost segregation? My CPA recommended them but their quote is about $1,500 higher than recostseg.

Thanks for starting this thread! I'm in a similar situation - just closed on my first duplex last month and my CPA mentioned cost segregation but I wasn't sure where to start. Reading through everyone's experiences has been super helpful. One thing I'm curious about - for those who've done cost segregation studies, did you do them in the first year of ownership or can you go back and do them later? I'm wondering if I should rush to get one done before filing this year's taxes or if I have more flexibility on timing. Also seeing a lot of mixed opinions on company selection. Sounds like the engineering-based approach and audit support are key factors to consider over just price. The potential tax savings everyone is mentioning definitely seem to justify paying for quality work!