Cost segregation has long been a favored tactic by property investors looking to lower their tax obligations and boost cash flow, but for a while, it looked like the tax strategy may be coming to an end. Bonus depreciation was on a downward trend toward complete elimination by 2027, which would have significantly reduced the tax savings that were made possible through a cost segregation study.
But OBBBA (the One Big Beautiful Bill Act) changed that. With 100% bonus depreciation permanently reinstated, property investors now have more possibilities than ever to maximize their tax savings and boost their bottom line.
The rise of cost segregation has meant there’s no shortage of firms offering cost segregation services on the market. However, it’s important to note that choosing the right firm is vital for success. Working with a general CPA runs the risk of missing out on savings at best, to failing an IRS audit at worst.
If you’re considering cost segregation, then the following list is for you. We’ve put together a ranked list of the best cost segregation service providers in the US, including well-established players to relative newcomers that have changed the game. Let’s take a look.
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R.E. Cost Seg: The Top-Ranked Cost Segregation Service Provider
R.E. Cost Seg is one of the newer names in the cost segregation market, but they’ve quickly established themselves as the firm to beat.
After all, this is a cost segregation firm that ticks pretty much everything that clients look for when looking for a team to work with. For one thing, they only offer cost segregation services. That allows them to offer a much deeper level of analysis than other, more diluted firms, and to work quickly. They’re noted for their quick turnaround times and the extent of depreciation they’re able to recover.
We also appreciate how easy R.E. Cost Seg makes it to unlock tax savings. You can get a free proposal that outlines approximately how much you’ll save before getting started. If you choose to work with them, you’ll just need to confirm some property details, schedule a visit (either virtual or onsite), and then wait for the detailed report and fixed asset schedule to arrive in your inbox (or, if you prefer, sent directly to your CPA). They’ve got an exceptional audit rate, too, with less than 0.1% of their 15,000+ property studies being audited, with a 100% pass rate.
Ultimately, this is a firm that makes cost segregation easy, yet they achieve incredible results, generating savings of more than $1.5 billion to date.
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KBKG: A Good Option for Tech-Minded Property Investors
Want to unlock the savings made possible through cost segregation, and don’t mind doing some work yourself? Then KBKG could be the right option. This firm has invested heavily in its software offerings, allowing clients to take control of their cost segregation tax responsibilities from the comfort of their own home.
All you need to do is input some details, let the AI-backed software do the work, and wait for your report to be delivered. If you notice any errors, you can use one of the five corrections that are enabled via the software.
It’s important to note that the software does have a few limitations. The self-guided software can only be used on properties with a value of up to $1.5 million, and it’s not quite as efficient at discovering as many saving opportunities as cost segregation experts. However, if you like the firm and want a more detailed analysis, then you can also opt to look beyond the software and work with the specialist team directly.
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BDO: Best for Complex Cost Segregation Needs
BDO is not a standalone cost segregation service provider. It’s one of the many services that it offers. But as one of the world’s largest accounting firms, BDO has earned its reputation for delivering exceptional tax services to clients all over the world — and that alone earns its place on our list.
They’re best-suited for clients that have complex cost segregation needs or who are already working with BDO as part of their broader service scope. After all, working with large firms is typically best when the cost segregation requirements must overlap with other tax obligations that are already managed by the firm. While it’s worth noting that BDO offers a less specialist service than standalone cost segregation service providers, they excel when there’s a large/complex commercial focus, and they’re all well-known for delivering a high-end level of client service.
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Engineered Tax Services (ETS): 25 Years of Experience
Engineered Tax Services has a long, twenty-five-year history of delivering exceptional cost segregation services to its clients. According to their own data, their services have helped commercial property owners save an average of $250,000 per property, providing an ROI of more than 10x the investment.
They work in all fifty states, and with both commercial and residential properties. They offer a handy calculator on their website that can show approximately how much clients can save if they use their services. They also offer a suite of other services, such as insurance protection and engineered incentives reports, that can help clients get even more value from their property investment.
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CohnReznick: Best For High Value Properties
CohnReznick, one of the largest accounting and advisory firms in the United States, offers cost segregation studies for properties that are valued over $2 million. Their team consists of engineers, tax professionals, and former IRS attorneys who have a deep understanding of technical tax and the construction industry. They mostly work with developers and large commercial owners, but if they’re right for your needs, then you should find that you’re backed by one of the leading firms in the country.
And there we have it! With so many great options on the table, the right choice ultimately comes down to your needs. For many, the services offered by R.E. Cost Seg will suffice; for those with complex requirements, BDO may be best.
