Residential Cost Segregator®

Cost Segregation Software Designed for CPAs, Tax Preparers & Building Owners

The Residential Cost Segregator™ is an online software program that allows CPA’s to generate custom reports in just minutes, providing tax benefits to clients without hiring a specialist. The software is available for residential rental properties up to 6 units with a depreciable tax basis of $500,000 or less (purchase price less land).

Try it now. Create a custom report with detailed building component cost breakdown for retirement deductions and faster depreciation.

 

“I used the Residential Cost Segregator® software right after it came out in September of 2016 for a client that had multiple single family rental properties. The cost seg report savings on the properties were tremendous.  The client was very happy and I was able to charge a lot more for the tax return.”

-- Jeff Robertson CPA, Klein, Bogakos and Robertson, CPAs Inc

Estimate your tax savings with our free preview calculator. Just enter the property address and a few quick details, then submit for your custom preview.

Residential Properties

Available for Residential Rental Properties up to 6 units with a depreciable tax basis of $500,000 or less (purchase price less land).

Easy to Use

A report generally takes less than 15 minutes to complete without the need to hire a 3rd party Cost Segregation engineer. Designed for CPAs, Tax Preparers, and Building Owners.

KBKG Audit Guarantee

We stand behind our reports. In the event of an IRS audit, KBKG will provide free audit support time at no additional charge for issues directly related to our report.

Backed by KBKG

A Cost Segregation report is only as good as the people standing behind its findings. KBKG employs one of the largest and most respected teams of Cost Segregation engineers in the US.
 

481(a) Adjustment

For properties acquired in prior years, optional 481(a) “missed deduction” calculation schedules are available for regular Federal and AMT.

$399 per Report

For properties acquired in prior years, optional 481(a) “missed deduction” calculation schedules are available for regular Federal and AMT.

» Discount Details

What’s the difference between a formal Cost Segregation study performed by experienced engineers and a Residential Cost Segregator® report?

For most buildings, a Cost Segregation study requires the knowledge of a Certified Cost Segregation Professional (CCSP) with an engineering background. This is because of variations in construction from one building to another as well as varied tax law depending on building types. The engineer physically inspects the property and performs construction quantity takeoffs to account for each building component. Empirical cost data is then used to reconstruct the cost of the entire property. The result is a report with schedules showing values that can be substantiated by the data collected by the engineer.

The Residential Cost Segregator® utilizes many of the same concepts, calculations, and data. Instead of an engineer, the Residential Cost Segregator® relies on data provided by the building owner. So if the building owner indicates the property has carpet in the bedrooms and was acquired with certain appliances, the software accounts for these items. The information provided is processed using KBKG’s proprietary algorithms and empirical data to generate a logical breakdown of costs for each major property component.

The Residential Cost Segregator® is designed specifically for properties too small to hire an experienced CCSP to analyze. Because every property is unique, it may not account for unusual items that exist and generally provides a more conservative allocation than may be available to the taxpayer. The Residential Cost Segregator® is not adequate for use to conduct a Cost Segregation study on larger, more complex properties.

Case Study


Property Details:

• 2 Story Residential Duplex
• Depreciable basis = $300,000
• Placed in Service two years ago
• Building Area: 2,000 SF
• Lot Size: 4,000 SF

Immediate benefits from reclassification to shorter tax lives:

• Additional deductions of $21,000 in the first year
• Additional deductions of $28,000 in the first 5 years
• Net present value of $7,500*

*Using a tax rate of 40% and 8% ROI. Does not include benefits from a future partial disposition of building components.

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