Cost Segregation Study Engine assembles a documentation-complete, audit-defensible cost segregation study — every component reclassified from 39- or 27.5-year property into 5-, 7-, and 15-year assets, with a signed engineering-based report and a CPA-ready Form 3115 / §481(a) catch-up package — checked against the IRS Cost Segregation Audit Techniques Guide before a specialist releases it.
A cost segregation study is only as strong as the documentation behind it. Misclassify a component from 5-year to 39-year property, miss a §1245 reclassification opportunity, or fail to support an allocation with credible cost evidence — and the study can be challenged, adjusted, or expose the owner to penalties.
Most owners rely on traditional engineering firms that charge $5,000–$60,000 per study, or DIY software that leaves the CPA to piece together the filing. Neither approach guarantees completeness against the IRS Audit Techniques Guide.
Cost Segregation Study Engine exists to close that gap with a single, exhaustive standard applied identically to every file.
We do not summarize the law and hope. Every study is scored against a versioned rule pack tied to the exact text of the IRS Cost Segregation Audit Techniques Guide (ATG) and MACRS rules under §168. These are the provisions each study is held to.
Every building component is identified from blueprints, photos, and cost records — flooring, cabinetry, specialty electrical and plumbing, site improvements, land improvements — and classified into the correct MACRS asset class.
Costs are allocated using engineering-based methods (detailed cost estimate, segregation of costs, or residual method) with documented support for each allocation.
Each component is correctly classified as §1245 personal property or §1250 real property, with borderline calls documented and reviewed by an ASCSP-credentialed specialist.
The study computes the correct MACRS depreciation for each asset class and the §481(a) catch-up adjustment for look-back studies, with deterministic verification.
The study includes a signed engineering report, detailed asset listing, cost allocation schedules, and a CPA-ready Form 3115 with supporting statements.
All source documents, workpapers, and methodology narratives are compiled into an audit defense binder, ready for IRS examination.
AI extracts and drafts. Deterministic rules — running as code, outside the model — decide what is complete. A human specialist signs every release. That order is never reversed.
Upload closing statements, AIA pay applications, blueprints, and photos. We return a free completeness read: which components and cost allocations you already have, and which are missing.
As your authorized clerical agent, we extract line-item costs from settlement statements, contractor invoices, and draws, and identify components from blueprints and photos using vision AI.
Each component is mapped to the correct MACRS asset class (5, 7, 15, 27.5, or 39-year) using the ATG taxonomy and §168 rules — no legal opinions, no invented facts.
Costs reconcile to the penny; component counts match blueprints; MACRS class lives are verified; §1245/§1250 borderline calls are flagged for specialist review. Any failure blocks release.
An ASCSP-credentialed or engineering-competent reviewer signs the study. High-value or complex properties route to attorney review first.
You receive the study: signed engineering report, asset listing, cost allocation schedules, Form 3115 / §481(a) package, and audit defense binder — ready for your CPA to file.
The deliverable is completeness itself — every component classified and cost allocated, or explicitly exception-coded. Nothing is left implicit.
The gates that decide completeness are code, not a model's opinion. A classification error cannot slip past a MACRS rule.
We prepare documentation and run searches as your clerical agent. We never give tax advice, file returns, or contact the IRS on your behalf.
Simple, predictable, and aligned with a documentation standard — not a percentage of any tax savings.
Start with a free Property Scan. Send your closing statements, blueprints, and photos and we'll return a completeness read against every subsection of the IRS Cost Segregation Audit Techniques Guide.
Documentation-completeness service · not tax advice · your CPA files every return.