Pay less tax on the real estate you already own.
Cost segregation studies for residential and commercial property owners across the United States, coordinated by a real accounting firm you can call — headquartered at 3970 Avenue D, Suite D, Billings, MT 59102. Fixed fees and detailed, documented reports.
Cost segregation savings calculator
An illustrative first-year federal estimate only — not personalized tax advice or a guarantee of savings. Enter your building's cost basis (do not include land) and pick your marginal tax rate to see a rough range.
Estimate only. First-year federal savings based on accelerated depreciation × marginal rate. Actual results depend on property specifics, bonus depreciation rules, passive activity limits, and your full tax situation. Not tax advice.
Get a real quoteA cost segregation study accelerates the depreciation on your building.
When you buy, build, or improve real estate, the IRS makes you depreciate the building over 27.5 years (residential rental) or 39 years (commercial). That is glacial. A cost segregation study is an analysis that reclassifies specific components — cabinetry, flooring, specialty electrical, land improvements, sitework — into 5-, 7-, and 15-year property.
The result can be significantly larger depreciation deductions in the early years of ownership, bonus depreciation stacking, and real dollars back in your pocket at tax time. On a look-back study for a property you already own, missed depreciation can often be caught up in the current year via Form 3115, frequently without amended returns (Form 3115 preparation is a separate engagement).
We coordinate studies for property owners in all 50 states. The technical reports are prepared and reviewed by specialized third-party cost segregation professionals, using a methodology aligned with the IRS Audit Techniques Guide.
Our cost segregation study methodology
Our cost segregation studies use a data-driven approach based on thousands of previously completed engineering studies. Using information about your property — including its building type, location, size, and other characteristics — specialized software compares your property against similar buildings to identify assets that may qualify for accelerated depreciation.
Reports use a Detailed Engineering Cost Estimate methodology, combined with modeling and sampling, and draw on industry-standard construction cost databases such as RSMeans and Marshall & Swift.
The analysis estimates the allocation of property costs into different depreciation categories, including:
5-year property
Certain equipment, fixtures, and other qualifying personal property.
15-year property
Qualifying land improvements, such as parking lots, sidewalks, and landscaping.
27.5- or 39-year property
The remaining building components, depending on the property's use.
Marlow Accounting coordinates each study. The technical reports are generated with specialized software and then go through a manual quality-control review by third-party cost segregation specialists. During that review, available property information may be verified using public records, property databases, real estate listings, and photographs.
The result is a customized cost segregation report that identifies potential depreciation deductions and opportunities to reduce your tax liability.
This methodology uses historical engineering data and property-specific information rather than an on-site engineering inspection. Standard studies are completed remotely and do not require an on-site inspection — though if optional audit support was purchased and an IRS audit occurs, an inspection may become necessary depending on the circumstances.
Every report documents how each classification was determined, using a methodology aligned with the IRS Audit Techniques Guide. Standard reports do not automatically include an individual engineer's signature; if you specifically require a professional signature, let us know before proceeding so we can discuss the request.
Pick your path
Single-family through 4-plex
Short-term rentals, long-term buy-and-hold, small multifamily. Fast turnaround, fixed price.
Multifamily, office, retail, industrial, hospitality
Anything 5 units and up, plus every commercial building type. Engineering-based deep dive.
Study pricing at a glance
All fees are quoted in writing before you commit. Final pricing depends on property size, complexity, and the state of your cost records.
| Study type | Typical range | Notes |
|---|---|---|
| Residential (1–4 units) | $750 – $1,500 | Single-family, duplex, triplex, 4-plex. Short-term or long-term rental. |
| Commercial & 5+ unit residential | $1,500 – $5,000+ · avg ~$2,000 | Multifamily, office, retail, industrial, hospitality, medical, specialty. |
| Report corrections | From $150 | Scales with complexity of the change. |
| Audit support Recommended | $300 per report | Technical assistance with the report if the IRS asks questions. Terms apply. |
See exactly what you'll get
Real redacted sample studies. No email gate, no lead form — just the PDFs.
Single-family rental study
A redacted example of a standard report — itemized asset classifications, estimated component costs, and recovery periods.
- Property summary + placed-in-service
- 5-, 7-, 15-year asset reclassification
- Methodology narrative
- Estimated component costs and recovery periods
Commercial building study
A redacted example of a standard report — itemized asset classifications, estimated component costs, and recovery periods.
- Property-specific analysis
- Full 5/7/15/39-year asset detail
- Estimated component costs
- Supporting construction-cost references
IRS Form 3115 preparation
Form 3115 is a request to change an accounting method. For some cost segregation look-back studies, it is used to claim previously missed depreciation. Marlow Accounting offers Form 3115 preparation upon request, subject to a separate engagement and fee. Purchasing a cost segregation study does not automatically include Form 3115 preparation, review of prior tax returns, depreciation implementation, tax return preparation, tax planning, or a determination of whether Form 3115 is necessary. Unless Marlow Accounting is separately engaged for those services, the taxpayer and their tax professional are responsible for determining the appropriate tax treatment.
- First Form 3115
- $1,500
- Each additional Form 3115
- $1,100
- Second, third, and subsequent forms
Pricing is subject to change if the property in question has more than 10 subassets (individual depreciable components). This may result in additional costs.
Documents needed for Form 3115
- Two years of previous tax returns — personal and business.
- Depreciation schedules as prepared by your previous accountant.
- A copy of the cost segregation report for the property in question. If the study was obtained through Marlow Accounting, we can provide the completed report.
These are the baseline documents. Additional documents may be requested if necessary.
TaxDome uploads only
Upload these documents only through our secure TaxDome client portal — not through this website form or as email attachments. If you don't have portal access yet, email cory@marlowaccounting.com and include the first name, last name, phone number, and email address of the person who needs access. Our team will set up your account and follow up with login instructions.
After uploading, you MUST send us a message in TaxDome and/or email cory@marlowaccounting.com to let us know your documents were dropped off. If you do not notify us, we will not know the documents were uploaded.
Download your property questionnaire
Pick the questionnaire that best matches your property, fill it out, and email it back. This kicks off every study.
Residential · 1–4 units
Single-family, condos, small multi-family, and modular residential.
Rental Home (Single-family / 2–4plex / Townhome)
Long-term or short-term rental homes, duplex, triplex, or 4-plex.
Residential Condo
Individually-owned residential condominium units held for rental.
Modular or Builder's Package Home
Manufactured, modular, or builder's package residential properties.
Commercial · 5+ units & non-residential
Multifamily 5+, office, retail, industrial, hospitality, medical, and specialty.
Apartments (5+ units)
Apartment complexes and 5+ unit residential buildings.
Office Building
Class A, B, or C standalone office buildings.
Office Condo
Individually-owned commercial office condominium units.
Retail
Strip centers, standalone retail, and small retail buildings.
Retail Pharmacy
Standalone pharmacy retail buildings.
Retail Condo
Individually-owned retail condominium units.
Restaurant
Quick-service and full-service restaurant buildings.
Warehouse
Distribution, flex space, cold storage, and industrial warehouse.
Storage Facility
Self-storage and mini-storage facilities.
Nursing Home
Skilled nursing, assisted living, and long-term care facilities.
Hotel / Motel
Hotels, motels, resorts, and extended-stay properties.
Dental / Medical / Veterinary
Specialty medical, dental, and veterinary office buildings.
Daycare
Child-care and daycare facility buildings.
Bank
Standalone bank branch buildings.
Auto Service
Auto repair, service centers, and car-wash facilities.
Animal Grooming Facility
Pet grooming, boarding, and animal care facilities.
Mixed-Use
Buildings combining residential, retail, or office uses.
Improvements & New Construction
Leasehold improvements, major renovations, and ground-up builds.
Client Improvements
Leasehold or tenant improvements to an existing building.
Client Improvements or New Construction
Ground-up construction, major renovations, or large additions.
$300 once — so a great deduction never turns into a bad letter
A cost segregation study moves a large chunk of depreciation into your first year or two of ownership. That's exactly the kind of outsized deduction the IRS notices.
If it's ever questioned, the deduction survives on documentation — the engineering methodology, the asset-by-asset breakdown, the source records, and a clear written answer to the examiner's letter. Without that, the reclassification can be disallowed even when it was correct.
Audit Support means Marlow Accounting is ready to step in with technical help on the report if questions come up. It is technical assistance related to the cost segregation report — not the same as direct IRS representation.
Straight talk: we recommend Audit Support because studies that can't be documented are what create problems for owners — and we'd rather you have help lined up before you ever need it.
What Audit Support covers
- Supporting documentation. Supporting documentation for the report's asset classifications and cost estimates, plus additional documentation when required.
- Methodology explanations. Clear explanations of the study's methodology — component classification, recovery periods, and cost-estimating approach.
- Technical help answering report questions. Technical assistance responding to examiner questions about the report itself.
- Support for your representative. Whoever represents you — your own EA, CPA, or tax attorney — gets the technical report support they need.
- IRS representation is separate. Cory Marlow is an IRS Enrolled Agent and can represent you before the IRS when separately engaged to do so. Audit Support alone does not include IRS representation.
- One flat fee per report. $300 per report, subject to the terms and conditions below.
What we need from you
- · Audit Support is subject to applicable terms and conditions.
- · Notify us within five business days of receiving the initial IRS audit notification.
- · Provide photographs or video documentation of the property if requested.
- · Additional inspection or travel expenses may apply — an on-site inspection may become necessary depending on the circumstances.
- · Audit Support covers the cost segregation study itself, not unrelated items on your return.
- · There is no guarantee of a particular IRS outcome.
Four steps, start to finished report
Property questionnaire
Send us the address, closing statement or construction ledger, placed-in-service date, and a few photos. A quote for our fee will be provided within one week of submitting the completed property information form.
Specialist analysis & review
Third-party cost segregation specialists prepare the report and complete a manual quality-control review.
Report delivered
You receive a PDF report with itemized asset classifications, estimated component costs, and recovery periods.
Optional audit support
$300 flat per report. Highly recommended — technical assistance with the report if the IRS ever asks.
What standard reports generally include
Property-specific analysis
An analysis based on your property's type, location, size, and cost information.
Itemized asset classifications
Line-by-line breakdown of 5-, 7-, 15-, 27.5-, and 39-year property.
Estimated component costs
Cost estimates for the individual building components identified.
Recovery periods
The applicable depreciation recovery period for each asset class.
Construction-cost references
Supporting references to industry-standard construction cost data.
Asset allocation details
How the property's cost is allocated across asset categories. Standard reports do not automatically include an engineer's signature, and Form 3115 is a separate service.
Cost segregation questions
Have a specific property in mind? Send us the details . A quote for our fee will be provided within one week of submitting the completed property information form.
Ready to request a quote for your property?
A quote for our fee will be provided within one week of submitting the completed property information form. We serve property owners anywhere in the U.S.