Why Our Cost Segregation Studies Cost 50% Less
Traditional market pricing vs. our AI-powered approach. Based on 1,000+ studies analyzing over $1 billion in real estate, we know exactly how to deliver the same IRS-compliant quality at a fraction of the cost.
Most cost segregation firms charge $5k–$60k+ for the same work we deliver starting at $499. That's not a typo.
We're not cutting corners—we're cutting overhead. By leveraging AI trained on 1,000+ completed studies (representing over $1 billion in analyzed real estate) and automation for the 80% of work that's pattern recognition, Matthew and our team can focus on the 20% that requires real engineering judgment. The result: studies that cost 50% less while maintaining the same IRS-compliant quality standards.
Traditional Market Pricing (What Others Charge)
Here's what you'll pay at most cost segregation firms. These ranges reflect actual market rates based on our analysis of 1,000+ studies across $1 billion+ in real estate transactions:
| Study Level | Traditional Firm Cost | Property Examples |
|---|---|---|
| Residential / Small | $2,500 – $6,500 | Single-family rentals, duplexes, small retail |
| Mid-Size Commercial | $6,500 – $18,000 | Apartments (6–50 units), office, strip centers |
| Complex / Large-Scale | $18,000 – $60,000+ | Hotels, manufacturing, mixed-use, high-rise |
Our Pricing: AI + Automation + Human Expertise
IRS-Compliant Studies Starting at $499
We deliver engineering-based cost segregation studies at approximately 50% of traditional market rates—starting at $499 for qualifying properties. Our pricing scales with property complexity, but our philosophy doesn't change: democratize access to cost segregation by eliminating unnecessary overhead while maintaining full IRS compliance.
Traditional firms charge $2,500–$60,000+ for studies that take 2–6 weeks. We deliver the same IRS Audit Techniques Guide-compliant output in days, not weeks, at half the cost. The only difference: we use AI for pattern recognition (80% of the work), while traditional firms bill for manual categorization at $150–$250/hour.
How We Cut Costs Without Cutting Quality
After completing 1,000+ studies, Matthew identified where traditional firms waste money—and where they add genuine value. Here's our approach:
1. AI for Pattern Recognition
80% of cost segregation is identifying standard components: carpet, cabinets, parking lots, specialty electrical. Our AI handles this instantly using data from our 1,000+ study database. Traditional firms bill $150+/hour for junior engineers to do the same work manually.
2. Matthew Verifies Every Number
Automation handles the grunt work. Matthew and our team review every asset classification, percentage allocation, and depreciation schedule. You get the speed of technology with the judgment of experienced engineers.
3. Focused Team, Zero Overhead
We're not a 200-person accounting firm with fancy offices and administrative layers. We're a close-knit team dedicated exclusively to cost segregation. No CFO advisory, no audit services, no distractions. Just cost seg—done exceptionally well.
4. Full Transparency
We disclose everything: our methodology, our data sources, our assumptions. No black boxes. You see exactly how we arrived at every number in your study. This is the opposite of how traditional firms operate.
What You Get (Same Quality as $15k Traditional Studies)
Our studies meet or exceed IRS Cost Segregation Audit Techniques Guide standards established in IRS Publication 551. Every study includes:
- Engineering-based component analysis: Licensed professional oversight by Matthew's team with field experience across 1,000+ properties
- IRS-compliant documentation: Detailed asset-level depreciation schedules formatted for direct tax return attachment
- Photographic evidence: Digital documentation for properties requiring site visits
- Legally defensible classifications: Every asset allocation supported by specific IRS guidance, Treasury Regulations, and Tax Court precedent
- Transparent methodology: Full disclosure of estimation methods, data sources, and calculation logic—no black boxes
- Lifetime audit support: We stand behind our work if the IRS questions your return
The only difference between our $499+ studies and traditional $5k–$15k studies: we use AI for the 80% of work that's pattern-based, dramatically reducing billable hours while maintaining the same engineering rigor for complex classifications.
Traditional Firm vs. Modern CFO
Traditional $12,000 Study:
Junior engineer spends 40 hours manually categorizing components → Senior engineer reviews 8 hours → Report writing 6 hours → Total: 54 billable hours × $150–$250/hr = $8,100–$13,500, marked up to $12,000+ for overhead and profit.
Modern CFO Approach:
AI categorizes components in 10 minutes using historical data → Matthew reviews and adjusts 2 hours → Automated report generation 5 minutes → Total: 2 human hours for quality control, dramatically lower cost passed to you.
Same IRS-compliant output. 50% lower cost. That's the power of technology applied correctly.
Why Traditional Firms Charge So Much
It's not malicious—it's structural. Big accounting firms have:
- High overhead: Corner offices, administrative staff, partner profit expectations
- Billable hour model: Incentivized to maximize hours, not efficiency
- Manual processes: Junior staff doing work that AI could handle instantly
- Cross-selling pressure: Cost seg is a loss leader to sell you audit/tax services
We don't have any of that. We're builders and engineers who saw an opportunity to apply technology to an outdated industry. Our entire business model is: deliver institutional-quality studies at prices accessible to individual property owners.
Our Democratization Philosophy
Our lead engineer Matthew built Modern CFO on a simple belief: tax strategies shouldn't be reserved for billion-dollar funds. If you own a $500k rental property, you deserve the same quality analysis as someone buying a $50M apartment complex.
Traditional firms keep pricing high and data hidden to maintain their moat. We're flipping that model. Transparent data, transparent pricing, technology-driven efficiency, human-verified quality.
This is how cost segregation should have worked from the beginning.
Real Case Study from Our Database: Traditional vs. Modern CFO Pricing
Actual Study: 16-unit Multifamily Property, Phoenix, AZ (2024)
Purchase Price: $2,100,000
Land Value: $420,000 (20%)
Depreciable Basis: $1,680,000
Study Result: 28% reclassified = $470,400 to accelerated depreciation
Traditional Firm Quote (actual): $8,500
Modern CFO Pricing: ~$4,250 (50% less)
Cost Difference: $4,250 savings on study fee alone
Tax Impact:
First-year extra depreciation: ~$68,000 (using MACRS accelerated methods)
Tax savings at 37% bracket: ~$25,160
Without 100% Bonus (Old Law):
Tax savings: ~$25,160 first year using MACRS
ROI: 3.0x (traditional firm) or 5.9x (Modern CFO)
With 100% Bonus (July 2025 Legislation):
First-year deduction on reclassified $470,400: full $470,400
Tax savings at 37%: $174,048 first year
NEW ROI with Traditional Firm: $174,048 ÷ $8,500 = 20.5x
NEW ROI with Modern CFO: $174,048 ÷ $4,250 = 41x first year
The combination of 100% bonus depreciation reinstatement + Modern CFO's 50% cost savings creates unprecedented ROI. Same IRS-compliant study, same audit defense—just dramatically better economics for property owners.
Red Flags to Watch for (When Evaluating Other Firms)
Contingency Fees
Firms that charge based on savings have incentive to be overly aggressive with classifications. We use fixed fees—our incentive is accurate, defendable work.
Hidden Deliverables
If the engagement letter doesn't specify exactly what you're getting, walk away. We disclose everything upfront—no surprises, no upsells.
No Engineer on Team
IRS guidance emphasizes "engineering-based analysis." CPAs alone can't deliver compliant studies. Matthew's team includes licensed engineers.
Pressure to Buy Other Services
Big firms use cost seg as a loss leader to sell tax prep, CFO services, etc. We only do cost segregation—no cross-selling, no distractions.
Start with the Free Calculator
Before engaging us or any firm, run your property through our calculator. You'll see instant ROI estimates based on our 1,000+ study database. If the numbers work, schedule a free consultation to discuss a full study. If they don't, we'll tell you honestly—we're not here to sell you a study you don't need.
Ready to See Your Savings?
Get an instant estimate using our free calculator. If the ROI makes sense, we'll deliver an IRS-compliant study at 50% of what traditional firms charge—with full transparency and Matthew's personal review of every number.
Continue Reading
Learn more about cost segregation with these related guides:
- → How Much Does Cost Segregation Save? — See actual savings ranges by property type
- → Is Cost Segregation Worth It? — Decision framework based on 1,000+ studies
- → How the Calculator Works — Understand the AI methodology and accuracy
Disclaimer: Traditional market pricing ranges are estimates based on our team's experience across 1,000+ cost segregation studies and are provided for educational purposes only. Modern CFO pricing starts at $499 and scales with property complexity; contact us for a specific quote. This information does not constitute tax, legal, or financial advice. Consult qualified professionals regarding your specific situation.