6 Best Cost Segregation Companies

If you own any type of investment property, you should be aware of the benefits a cost segregation study can bring in tax savings. They have the power to significantly increase cash flow by accelerating the deduction of depreciating building-related assets. A cost segregation study separates the components of a building that should be depreciated normally from those that can be depreciated faster. By identifying these “faster depreciation” items, you can increase the amount of depreciation you take and increase overall cash flow.

It’s no fantasy, and it’s fully approved by the IRS – cost segregation studies can help you achieve your cash flow goals. Investors in any of these situations can benefit:

  • Purchasing a property
  • Renovating an existing, dated property or business location
  • Building a new building or property
  • Expanding an existing property
  • Making leasehold improvements

Best Cost Segregation Companies

CompanyWhy Choose ThemHQ
bedford cost segregation company logoBedford Cost SegregationStrong Local and National PresenceBedford, NH
kbkg cost segregation companyKBKGWell-rounded Services ProviderPasadena, CA
ets cost segregation companyEngineered Tax ServicesAlways Engineering-BasedWest Palm Beach, FL
ets cost segregation company logoDuffy & DuffyGreat for Larger PropertiesCleveland, OH
cssi cost segregation company logoCSSIProfessional ExpertiseBaton Rouge, LA
mcguire sponsel cost segregation logoMcGuire SponselCPA CollaborationIndianapolis, IN

Cost Segregation companies have been around for 50+ years and have helped real estate owners save money on their taxes. Little known to many real estate investors compared to the 1031 exchange or Section 121 Exclusion, cost segregation has surged in usefulness since 2018. With the passage of the Tax Cuts and Jobs Act, cost segregation’s benefits were increased dramatically.

If you’re looking to do a cost segregation study for your property, you should talk to a cost segregation company immediately. Many CPA’s have surface knowledge of cost segregation, but do not have the resources or engineers to do a full survey themselves. By using a large, reputable cost segregation company, you can ensure that your survey is done on time and is in compliance with the IRS.

in a market like florida, cost segregation companies can make a wold of difference

This brings up another question – How do I choose the best cost segregation company? What cost segregation companies are the best for my needs? Here at My Cost Segregation, we’ve vetted the specialists and interviewed real estate investors to recommend the best. If you’re looking to do a cost segregation study, but not sure who to work with – read below.

How we chose the best Cost Segregation Companies

Many of the best cost segregation companies offer similar services, especially for simple residential real estate cost segregation. That said, every cost segregation study has its own set of circumstances. All real estate investors should consider the type of cost segregation study you need and additional services needed to ensure the IRS does not coming knocking on your door.

Some cost segregation companies will try to do everything remotely and take a best guess at items to be depreciated faster. For larger commercial properties, this route is not recommended. We recommend you work with a cost segregation company that will do an on-site cost segregation study at your property’s location, with an engineer who is well-versed in the tax code.

Below are the things we’ve considered when vetting the best cost segregation companies:

  • Professional experience conducting complex cost segregation studies
  • Does the firm use degreed or professional engineers for the cost segregation studies? Are the studies performed with an engineering-based approach? Are their employees members of ASCSP?
  • Does the firm defend its work to the IRS in case of an audit?
  • What costs and fees are part of a cost segregation study?
  • Does the cost segregation company have professional customer service and adequate responsiveness?
the best cost segregation companies have  a national reach with a local touch

The 6 best cost segregation companies offer their services across the country. That said, there is definitely value in working with a company local to your region. While many firms can afford to send a cost segregation engineer out to your property, it is advantageous to work with a firm where all employees can meet you in person. In order to ensure the survey is done in an engineering-based way, you’ll need both the cost segregation engineer and tax specialists working together on your survey.

The best cost segregation companies are the ones that have experience with your specific situation and prompt service. If you have a certain property type (industrial, healthcare, residential), there are cost segregation specialists who have deep experience with these. After reading this guide, you’ll be in a good position to choose a cost segregation company.

Bedford Cost Segregation – Strong Local and National Presence

bedford cost segregation company logo

Founded in 2002 and one of the largest pure-play cost segregation companies in the United States, Bedford has proven itself a capable and trustworthy partner to real estate property owners. Founded by Greg Bryant and headquartered in Bedford, NH (Boston metro), Bedford employs over 40 qualified partners, engineers, and business development staff.

They have now expanded their services to also provide help with energy-based tax incentives and R&D tax credit programs. That said, their primary focus started with cost segregation and that continues to this day. They are not an affiliate or owned by any CPA or accounting firm. This helps them to provide neutral, third-party advice instead of trying to up-sell additional services. We’ve found the team to be easy to work with and very responsive to inbound requests for information. They come highly recommended for any type of property owner.

Bedford Cost Segregation Professional Experience

greg bryant from bedford cost segregation

Bedford is not only well known in the cost segregation industry, but also has one of the highest levels of professional experience. Their managing director and founder Greg Bryant has been on the forefront of cost segregation studies since Bedford began. He was the founding president of the American Society of Cost Segregation Professionals (ASCSP) and currently serves on its Technical Standards committee. This committee evaluates, discusses, and debates cost segregation methods and if they’ll stand up to IRS scrutiny. With someone so involved on your team, Bedford makes an excellent choice.

Bedford proudly states on their website that they have done over 15,000 cost segregation studies since their inception in 2002. They have helped hundreds, if not thousands of clients in a wide variety of industries. They state that their project experience includes a background that is broader than nearly any other cost segregation company out there. They’ve worked on projects that span $350,000 residential buildings up to a $1.4B giant commercial property.

Their technical staff are almost exclusively professional engineers, which is a big leg up as the IRS puts more weight in engineering-based studies. All of their technical staff has at least a four-year technical degree, and many hold master’s degree or more. Last, they have multiple staff members who are 100% dedicated to process control and continuous improvement. This helps Bedford keep their cost segregation studies and reports consistent across multiple clients. Like your favorite nationwide restaurant, you can know that the end product you’ll receive from Bedford will be high quality and consistent.

Cost Segregation Services Bedford Offers

Bedford Cost Segregation offers an extremely wide variety of cost segregation services. They can help with many different property types, and serve a ton of different types of clients. On their website, Bedford notes that they’ve conducted thousands of cost segregation studies since their founding in 2002. Of these studies, the value in property has ranged from $350,000 residential real estate up to billion dollar commercial projects. Wherever on that spectrum you lie, Bedford Cost Segregation will be able to help.

Most unique, Bedford calls out services they offer and times when a cost segregation study makes sense based on where the property is in its lifecycle. Said differently, anywhere your property is from concept or feasibility, all the way to a sale or demolition, there are ways cost segregation can save you on taxes. Their team is sophisticated with respect to construction, all the way to residential and commercial sales. Like other cost segregation companies, they serve any type of property you own. Whether that’s a nursing home, office building, or a grocery store, Bedford team can help.

Bedford Cost Segregation Costs

Before engaging multiple cost segregation companies, any property owner will want to know an estimate on overall cost. At Bedford, they are focused on giving you as much information as they can up front. This helps you determine if a cost segregation study is worth it considering your situation. Most cost segregation companies give the advice that you should expect at least 2x the yearly tax savings compared to the cost of the study itself.

Bedford Cost Segregation has been at the forefront of giving mainstream real estate investors the ability to do a cost segregation study. Before the industry went “mainstream” it usually cost $30,000 or more to do a study. This is partly because only Big 4 accounting firms were doing studies, and partly because it wasn’t as popular previously. Today, Bedford says that the average cost segregation study comes in closer to $10,000-$15,000. Bedford also gives the advice that ANY study should be done on a “time-and-materials” basis, rather than using a contingency fee. According to the IRS Audit Techniques Guide (ATG), contingency fee studies give a perverse incentive to be overly aggressive with respect to accelerated depreciation.

Bedford Cost Segregation Locations and Customer Service

Bedford Cost Segregation is one of the largest cost seg providers nationwide. They started in Bedford, NH (Boston metro area) and still have their headquarters there. That said, they have staff, offices, and engineers across the country. They likely have someone within driving distance to your property.

From reaching out to Bedford, we found their team to be extremely responsive to inbound requests. They offer a risk-free consultation and will help you determine if a cost segregation study is right for your situation before committing to any charges. Here are the office locations for Bedford Cost Segregation:

bedford nh is a nice town near manchester nh

Boston – 19 Kilton Road Suite 100 Bedford NH 03110

Louisville – 211 Townepark Circle Ste 100 Louisville KY 40243

Physical presence in: Orlando FL (Maitland), Seattle WA (Edmonds), St Louis MO, Wilmington NC, Wichita KS, Golden CO, Houston TX, Atlanta GA, Charlotte NC, Encinitas CA, Saratoga Springs NY, Colorado Springs CO, Dallas TX, Tucson AZ

KBKGWell Rounded Services Provider

kbkg cost segregation company

One of the largest and most respected tax solutions firms in the United States, KBKG has been providing cost segregation studies since 1999. They have a nationwide coverage with their army of cost segregation engineers and business development personnel. They provide their services to both tax professionals and businesses, and even offer a useful cost segregation software tool for residential property owners.

KBKG Cost Segregation Professional Experience

Although KBKG opened its doors in 1999, most of their staff have been involved in the cost segregation industry since the 1980s. They have conducted thousands of cost segregation studies since inception and have 30+ employees across the country comprising engineering, business development, and management.

While a professional certification is not required in order to conduct cost segregation studies, most of their cost seg staff are members of the American Society of Cost Segregation Professionals (ASCSP). This organization provides an exam for the professional designation Certified Cost Segregation Specialist.

Cost Segregation Services KBKG Offers

KBKG Webinar - Introduction to Cost Segregation - YouTube

KBKG offers an extremely broad variety of cost segregation services. No matter your situation KBKG has likely worked on a similar situation and will have cost segregation examples to lean on. If you are in any of these types of situations, KBKG is a good fit for you:

  • Own an existing real estate property and looking to reclassify some assets for accelerated depreciation
  • Purchased or about to purchase an existing property
  • Construct a new property or renovate an existing property

Additionally, any type of investment or business property is good fit for a cost segregation study:

  • Business owners who own their facility – manufacturing plants, hotels, restaurants, shopping centers, etc.
  • Individuals who own large residential or commercial properties
  • Real estate companies with multiple properties, either residential or commercial
  • Franchise owners who have similar property types such as golf courses or healthcare facilities

KBKG Cost Segregation Fees

Most investors and tax professionals will want to know what a cost segregation study will cost before spending time investigating. KBKG makes it easy for you – they estimate that the average cost segregation study costs between $5,000-$15,000. This can vary based on a number of factors, such as:

  • Building size and square footage
  • Type of property – most residential buildings can be done without a physical engineering-based survey
  • Number of tenants
  • Other custom items that have been built on the property

This is on the lower end of the spectrum for cost segregation studies. The Journal of Accountancy estimates that a typical cost segregation study costs between $10,000 and $25,000. That said, you’ll have to reach out directly in order to get a more accurate estimate.

You may be wondering if pursuing a cost segregation study is worth it in your scenario. We suggest that your property is valued at least $1M or more to consider an in-person, engineering-based study. Further, you’ll want to estimate that your annual tax savings are at least 2x the cost to do the study itself. This way, you’re not out $10k-$25k and only saving a few dollars on your taxes each year!

KBKG Locations and Customer Service

Since they are one of the largest tax service providers and cost segregation companies in the US, KBKG has a local presence nearly everywhere. We’ve found their team extremely responsive to inbound emails and requests, with a free consultation regarding most questions related to a cost segregation survey. Here are the locations that KBKG has an office (In addition to these offices, many KBKG staff work remotely):

  • Pasadena (HQ) – 790 East Colorado Blvd Ste 600 Pasadena CA 91101
  • Woodland Hills – 21800 Oxnard St Ste 1040 Woodland Hills CA 91367
  • Valencia – 26650 The Old Road Ste 216 Valencia, CA 91381
  • Southeast – 53 S Main St Ste 300 Alpharetta GA 30009
  • Midwest – 1132 S Wabash Ave Ste 302 Chicago IL 60605
  • New York – 255 W 36th St Ste 504 New York NY 10018
  • Texas – 1600 Airport Fwy Ste 368 Bedford TX 76022

Engineered Tax Services (ETS) – Engineering-Based Solutions

ets cost segregation company

One of the highest profile engineering and cost segregation service providers in the United States, Engineered Tax Services is a solid cost segregation company. They began their work after noticing that most segregation reports were only available to real estate investors who worked with the Big 4 accounting firms. CEO Julio Gonzalez started Engineering Tax Services with the goal to bring the wealth-preservation incentives of cost segregation to mainstream America.

With headquarters in West Palm Beach, FL and sales/engineering offices nationwide, Engineered Tax Services may be a great fit for your cost segregation needs. They serve a wide variety of markets, but focus primarily on working with businesses. Some of the industries they specialize in include:

  • CPAs/Tax Accountants
  • Agricultural Industry
  • Architects, engineers, and contractors
  • Computer Science/Data Center Construction
  • Life Sciences
  • Manufacturing
  • Real Estate Investors

Engineered Tax Services Professional Experience

Engineered Tax Services (ETS) has been in business for over 20 years, and their team has hundreds of years of combined experience between them. They have a staff of nearly 20, many with an engineering background. ETS has conducted thousands of cost segregation studies for investors and businesses across the country. Additionally, they are able to provide cost segregation services to a wide variety of types of businesses. From Fortune 500 to individuals, ETS has proven its professional experience.

What Is Cost Segregation? - Engineered Tax Services (800) 236-6519 ...

Engineered Tax Services has a different background than most cost segregation companies. They are first and foremost an engineering firm, with a license in the state of Florida. This gives Engineered Tax Services a giant leg up over the majority of cost segregation companies. In order to fully stand up to an IRS audit, the taxpayer in question must be able to prove that a cost segregation study was done in an engineering-based way. By using Engineered Tax Services (ETS), you can be sure that it was done by a licensed engineer.

Cost Segregation Services that Engineered Tax Services (ETS) Offers

Engineered Tax Services (ETS) offers one of the widest selections of cost segregation services out of any firm that we’ve reviewed. They have significant professional experience in both the cost segregation and other real estate tax-saving methods. One unique area of ETS’ service offerings is that they break out the types of cost segregation studies they provide on their website. Different approaches are better suited to different types of investors, and the methods they use are below:

  • The Detailed Cost Approach – This cost segregation approach compiles all costs from construction and accounting records to build a report. It is the most comprehensive method and takes the most amount of time
  • The Detailed Cost Estimate Approach – This method is usually used for new construction. It’s similar to the detailed cost approach, but for each component used during construction, the cost segregation specialist will find an estimate of the cost of each component.
  • The Survey Approach – In this approach, the cost segregation specialist does a site inspection and has all components of the property listed. Then, the specialist will reach out to each contractor and sub in order to determine the price of each item.
  • Residual Estimation Approach – This cost segregation method adds together all of the costs for short-lived assets (5 or 7 year depreciation life). Then, these costs are subtracted from the overall project cost to determine what can be depreciated faster.
  • Sampling Approach – This is by far the most cost effective method, but also is somewhat risky. This cost segregation report is generated by sampling a large number of properties and estimating the prices of add-on’s. This method is best for firms with a large number of properties.

Engineered Tax Services also offers its services for a wide variety of property types. They list these types on their website, and the list is comprehensive of nearly every commercial and multi-family residential property type. This includes apartment buildings, golf courses, manufacturing properties, resorts, and more.

Engineered Tax Services Cost Segregation Fees

Although ETS does not publish how much a typical cost segregation study costs from them, they do mention that their rates are in line with market prices. Additionally, they add that fees for cost segregation reports have gone down throughout the industry. ETS’ CEO Julio Gonzalez started the firm with the goal of providing cost segregation services to main street investors. Previously, these services were only available through a Big 4 accounting firm.

Typically, cost segregation services range between $5,000 and $15,000, although this can vary wildly based on the property you own. For a small condo or duplex, there are possibilities to do a cost segregation for as little as $500-$1000 with a self-serve option. For investors who own a massive property such as a golf course or shopping mall, the fees could be closer to $50,000 or more. ETS gives the guidance that the typical cost segregation study can save you between 25% and 30% of the total cost can be used for accelerated depreciation. We recommend contacting ETS in order to learn more and get a quote.

Engineered Tax Services Locations and Customer Service

ETS has their corporate headquarters in West Palm Beach, FL but has a physical presence nationwide. They have a large team of both cost segregation engineers and business development personnel ready to assist at any time. In addition to real estate events and conferences that ETS speaks at, they have a large advertising and marketing presence.

From emailing the team, we found ETS to be extremely responsive to inbound requests for information. They were easy to work with and always professional. Here is their headquarters location:

Miami – 303 Evernia St #300 West Palm Beach FL 33401

Duffy & Duffy – Best Cost Segregation Company for Larger Properties

ets cost segregation company logo

Duffy & Duffy is one of the more recognizable names in the cost segregation space. They have been in business since 2002 and have performed thousands of engineering-based cost segregation studies around the country. Originally started by Dennis Duffy with a focus on cost segregation exclusively, they also now advise on Section 179 cost savings. Now, Craig Miller leads the firm as President, a position he has held since 2015.

Duffy & Duffy Professional Experience

Duffy & Duffy has done thousands of cost segregation studies throughout the years. Both Craig and Dennis are members of the American Society of Cost Segregation Professionals (ASCSP) and are registered CPA’s. They work with a wide variety of people who need cost segregation services. Real estate developers, franchisee’s, CPAs, and even real estate agents call on Duffy & Duffy for assistance conducting engineering-based studies.

Duffy+Duffy Cost Segregation - Photos | Facebook

Although Duffy & Duffy opened its doors in 2002, Dennis Duffy had been in the cost segregation study business for far longer before that. Originally an EY accountant with a background in construction, Dennis has been a CPA since 1972. Craig Miller has a similar level of experience. He joined the firm in 2007 as a project manager, and since 2015 has led day-to-day operations.

Cost Segregation Services Duffy & Duffy Offers

Duffy & Duffy offers an extremely thorough and wide variety of cost segregation services. Regardless of the situation you find yourself in related to a large real estate property, Duffy & Duffy will likely be able to help. They have significant professional experience and a long history of helping real estate investors, so they’ve seen nearly every situation out there. If you’re facing any of the below scenarios, Duffy & Duffy can help:

  • Own a real estate property and looking for more depreciation deductions
  • Recently purchased an existing building or about to purchase a building
  • Recently constructed a new building or added on to an existing building

Most unique, Duffy & Duffy aims their services at a wide variety of real estate professionals. On their website, they call out a number of different service providers that they work with regularly. Some of these include:

  • Real Estate Developers or Investors
  • Small business franchisees
  • Builders
  • CPAs
  • Real estate agents

Duffy & Duffy Cost Segregation Fees

Top of mind for any real estate professional or accountant is how much the average cost segregation study costs. Real estate investors want to know because they need to determine if a cost segregation study is worth it. Tax professionals want to know because they need to figure out how much to bill their end clients.

Duffy & Duffy estimates that their average professional service fee ranges between $5,000-$15,000. This depends on a number of different factors including:

  • Overall building value and size
  • Type of property – For example, most hospitals or auto dealers will have more items that are eligible for accelerated depreciation than a standard residential building
  • When the construction or add-on took place

For determining whether a cost segregation study is worth it or not, we recommend speaking with a neutral third party. Most will advise that you should try to save at least what the study costs, multiplied by two. For example, if the study costs $10,000, you should aim for at least $20,000 in cost savings to make the study worth it.

Duffy & Duffy Locations and Customer Service

Although Duffy & Duffy has a smaller team, they have three offices placed strategically throughout the midwest. Although they’re based in a few states, Duffy & Duffy provides their services nationwide. We emailed and called the team, and received a response almost immediately. They were happy to chat with us and provided some advice without pushing a sale. Here are the office locations for Duffy & Duffy:

  • Cleveland – 1991 Crocker Rd Suite 600-320 Westlake OH 44145
  • Columbus – 1900 Polaris Parkway Suite 450 Columbus, OH 43240
  • Detroit – 28175 Haggerty Road Novi, MI 48377

Cost Segregation Services, Inc (CSSI) – Professional Expertise

cssi cost segregation company logo

Cost Segregation Services, Inc (CSSI) is a longtime player in the cost segregation company market, and has built a solid reputation. With around seven full-time principals, CSSI has a national reach and has conducted over 20,000 cost segregation studies nationwide. Founded originally in 2003, CSSI was also heavily involved in the landmark case Hospital Corporation of America vs Commissioner.

CSSI Cost Segregation Professional Experience

Originally started in 2003, the team at CSSI has a large amount of combined experience in real estate taxes and cost segregation in particular. Most impressive are the number of cost segregation reports CSSI has produced over their 20-year operating history. 20,000 clients served is an impressive number, and the team at CSSI has seen nearly every type of situation possible.

Although cost segregation engineers are not required to hold any sort of professional designation, the team at CSSI still participates in various industry events. They are not members of ASCSP, but do hold presentations and meetings and are leaders in the cost segregation industry. They have a number of recommendations and testimonials on their website. Many CPAs, 1031 exchange companies, and even a community bank executive have attested to CSSI’s cost segregation services.

Cost Segregation Services CSSI Offers

CSSI offers a wide variety of cost segregation services for an even broader variety of professionals. One thing to note about CSSI is that their entire business is built on providing cost segregation services. While other firms focus on a variety of tax programs, CSSI exclusively does cost seg. If you’re in any of these types of situations, CSSI may be a good fit:

Cost Segregation Services Incorporated
  • Own an existing piece of real estate that has had construction or was built prior to 1987
  • Recently purchased or on the brink of purchasing an existing property
  • Doing construction on or about to renovate an already-owned property

Since CSSI only focuses on the cost segregation study market, they’ve broken their service offerings into three easy-to-understand pieces:

  1. Cost Segregation Analysis – The process of determining if a cost segregation study even makes sense. CSSI provides this info risk-free. They’ll review your potential tax deferral, cash flow increase, and analyze the net-present value of your savings.
  2. Cost Segregation Review – If the analysis is complete and it makes sense to move forward, your cost segregation study will get under way. With you and your financial advisor, CSSI will review your tax status, building construction costs, and applicable blueprints. Then, an on-site inspection with a cost segregation engineer will take place.
  3. Cost Segregation Report – After 4-6 weeks, CSSI will produce a report reclassifying each building component into its more appropriate tax category. Then, CSSI will assist your tax advisor in the completion of any tax forms needed.

CSSI Cost Segregation Fees

If you’re like us, you’ll want to have a decent idea of the costs of your cost segregation study before you spend time reaching out to service providers. CSSI does not publicly disclose on their website how much a typical cost segregation study costs. That said, many of their customers disclosed the range or ballpark they’ve paid in cost segregation fees. Their pricing structure is in line with the industry overall and we have not heard reports of any “gotcha’s.” Like other cost segregation companies, pricing can vary based on a number of factors such as:

  • Building square footage and overall size
  • Type of property – Commercial typically has more features and opportunities for accelerated depreciation. Usually, there’s a higher charge by the cost segregation companies
  • Number of tenants if residential, office, or retail
  • Custom items that have built on or are attached to the property

CSSI provides a risk-free cost segregation analysis in order to determine if a study is right for your situation. Most experts recommend that the annual tax savings are at least twice as much as the cost of the study. For example, if the study will cost $15,000, you should expect at least a ballpark tax savings of $30,000/year.

CSSI sets itself apart from competitors in that they guarantee assistance if you face an audit. On their website, they state that if you come under audit because of a CSSI study, an engineering-based expert will attend without any charge. This is a great program that helps put your mind at ease throughout the life of owning the property.

CSSI Locations and Customer Service

CSSI has carved out a niche for itself in the state of Louisiana, but they operate nationwide. All of their operating partners reside in Louisiana, so if you are in the southeast CSSI is an excellent choice. Their team has been extremely responsive to inbound requests for analysis and proposals. Reports from customers state that they were satisfied with CSSI’s overall level of service. CSSI operates from their headquarters in Baton Rouge, LA but are responsive to engineering studies around the country:

Baton Rouge – 10211 Siegen Lane Building 1 Baton Rouge LA 70810

McGuire Sponsel CPA Collaboration Experience

mcguire sponsel cost segregation logo

One of the largest independent specialty tax providers in the United States, McGuire Sponsel has a burgeoning cost segregation practice. Founded decades ago by Dave McGuire and TJ Sponsel, one partner had a background in engineering and construction, and the other in accounting. In 2019, McGuire Sponsel acquired Ernst & Morris to bolster their nationwide presence and subject matter expertise on cost segregation services.

In addition to providing cost segregation services to over 300 CPA firms nationwide, the McGuire Sponsel team also specialized in international and R&D Tax Credits. They have a unique method of partnering with regional and national CPA firms. Rather than the traditional method of CPA firms “subcontracting” with a specialty provider, McGuire Sponsel has been an “alliance network” that helps them bring their partners value and identify opportunities.

McGuire Sponsel Professional Experience

What is Cost Segregation? | Services & Studies | McGuire Sponsel

McGuire Sponsel has completed thousands of cost segregation studies throughout their existence. Their primary cost segregation business came through the acquisition of Ernst & Morris in Atlanta, which was the largest pure-play cost segregation firm in the country. Owing to this background, McGuire Sponsel has one of the deepest and most experienced groups for cost segregation studies.

In 2018 alone, McGuire Sponsel reviewed over $3.1B of assets and drove over $7.3M in tax savings for every $100M that they reviewed. This was from the 800 studies that they completed in 2018. With this background, you can be rest assured that there is not a situation that their team hasn’t seen before.

Cost Segregation Services McGuire Sponsel Offers

Similar to other cost segregation companies, McGuire Sponsel offers a wide variety of services to an ever-increasing number of property owners. Owing to McGuire Sponsel’s acquisition of Ernst & Morris in 2019 (one of the largest cost seg firms at the time), they will be able to help no matter the situation you are in. Any of the scenarios below are a great reason to reach out to McGuire Sponsel:

  • Currently own a real estate property and looking to accelerate depreciation on items
  • Recently purchased an existing building or about to purchase a building
  • Recently constructed a new building or added on to an existing building

McGuire Sponsel is a bit unique in that they primarily focus their cost segregation efforts on helping regional and national CPA firms do cost seg studies for their clients. Some cost segregation companies try to work with a huge variety of companies, but McGuire Sponsel focuses their efforts well. On their website, they give some criteria for properties that are a good candidate for cost segregation services:

  • Acquisition or New Build in excess of $750,000
  • Interior renovation in excess of $200,000
  • Companies with large fixed asset schedules
  • Companies that renovate or make repairs frequently

McGuire Sponsel Cost Segregation Costs

Always on the mind of any real estate professional or CPA firm is how much a cost segregation study will cost. In order to make a cost segregation study worth it, we recommend that your annual tax savings are at least twice the cost of the cost seg study. Said differently, if your cost segregation study is $10,000, make sure you’re saving at least $20,000/year on your taxes!

McGuire Sponsel does not disclose how much they charge for cost segregation studies on their website. That said, most cost seg studies fall between $5,000-$15,000. This can vary wildly based on a number of factors including:

  • Overall building value and size
  • Type of property – For example, most hospitals or auto dealers will have more items that are eligible for accelerated depreciation than a standard residential building
  • When the construction or add-on took place

We highly recommend reaching out directly to McGuire Sponsel or through a CPA firm in order to get an exact quote from the team.

McGuire Sponsel Locations and Customer Service

McGuire Sponsel is one of the largest specialty tax and cost segregation companies in the United States. Headquartered in Indianapolis, they have regional offices throughout the southeast and midwest. We have found the team to be extremely professional and responsive to requests for proposals. In order to get in touch with McGuire Sponsel, they provide a main 1-800 number in addition to regional office locations. Here are the locations McGuire Sponsel operates from:

  • Indianapolis (Headquarters) – 201 N Illinois St Ste 1000 Indianapolis IN 46204
  • Atlanta – 2190 Dallas Hwy Marietta GA 30064
  • Louisville – 900 E Main St Louisville KY 40204
  • Raleigh – 14460 Falls of Neuse Rd Ste 140-343 Raleigh NC 27614
  • Toll Free Number – 1-800-322-7776