DIY cost segregation: software prices, limits, and when to hire a pro

Yes, you can do a cost segregation study yourself. The IRS's cost segregation audit guide says there are "no prescribed qualifications" for who prepares a study, while emphasizing relevant expertise and experience. You still have to support the asset classifications and costs. The numbers need to be accurate and backed up.

For the tools below, "DIY" means software. You supply the address, purchase and land information, and the property details the tool asks for. Some forms ask for measurements too. The software builds a report and depreciation schedules. You hand them to whoever does your taxes.

The three tools compared here sell this straight to owners. Published prices start at $495.

DIY software is worth considering when the property is a straightforward rental within the tool's published scope and you can supply reliable inputs. A property over a stated limit needs another route. A heavily remodeled or unusual property needs its scope confirmed before you pay.

One more thing before you compare. The report fee is only one part of the decision. Check whether your property fits the tool, whether your tax preparer can use the report, and whether you can use the deduction this year. This page walks through all three.

Compare the DIY tools Check if my property fits

Already know you want a company to do it? Find My Cost Seg Provider.

For U.S. rental and business property owners. By CostSegregationMatch. Prices and terms checked October 6, 2026. These provider links are unpaid. How we make money.

DIY cost segregation software compared

These are the three tools we found that sell a self-service study to owners and publish a price. Every fact below comes from the company's own website.

Provider basis limits exclude land, but basis is not always just purchase price minus land. Certain closing costs, improvements, and other adjustments can matter; use the amount your preparer confirms and ask which costs the provider includes in its limit. Sources: IRS Publication 551, CostSegregation.com and its FAQ, DIY Cost Seg and its FAQ, Cost Seg EZ. Checked October 6, 2026. We have not bought or tested these providers' report services.

See software pricing See DIY Cost Seg pricing See Cost Seg EZ pricing

Four things to confirm before you pay

KBKG's $1.5 million limit is worded two ways. The homepage says "up to" $1.5 million. The FAQ says "sub $1.5M." If you're close, ask.

KBKG and renovations. Its FAQ describes a limited same-year workaround, acknowledges lower precision, and says the software is not built for a prior-year property with later improvements on a different date. Confirm the actual renovation history with the provider and your preparer. Combining costs in a software field does not settle the correct classifications or dates.

DIY Cost Seg shows two different top prices. Its homepage and Get Your Report page list $495 to $1,795 for residential reports and $1,295 to $3,695 for commercial reports. Its form landing page lists $495 to $995 and $1,295 to $2,690. Both start at the same place. Check the final price and scope before you pay.

Cost Seg EZ's limit is worded two ways too. Its homepage says purchase price under $1 million. Its sister brand's MVO services page says basis under $1 million for both lower tiers. Those aren't the same number. Its FAQ also includes improvements in its description of basis, so a renovation can matter to more than the renovation cap.

"IRS approved" is a sales line

You'll see "IRS Approved," "IRS Audit Ready," and "100% IRS Acceptance Rate" on these sites. Those are the companies' words.

Those labels do not establish IRS approval of your report or return. The IRS audit guide focuses on the support for the classifications and costs. A better question to ask is: "If the IRS asks about my report, what exactly will you do?"

Does your property fit a DIY tool?

Each tool publishes some limits on property type, size, or renovation. This check lines your answers up against the limits we could verify. It also checks three low-cost reports where a person reviews the work. It leaves missing requirements as "check first"; it doesn't approve your property or decide whether you can claim a deduction.

This short check assumes a purchased property. For new construction, a conversion from personal use, a gift, inheritance, or exchange, confirm the study's scope and basis directly with the provider and your preparer.

Example 1. You bought a single-family rental for $400,000, with a supported $80,000 allocation of that purchase price to land and no other basis adjustments. Your preparer confirms $320,000 of acquisition basis excluding land. No renovation. It became a rental this year. The check finds no conflict in the limits checked for KBKG, DIY Cost Seg, or either lower Cost Seg EZ tier. RentalWriteOff and Rapid Report stay at "check first": the tool hasn't confirmed the appraisal/intake requirements or Rapid Report's size and other conditions. None of those results is provider approval.

Example 2. You bought a condo for $350,000, with a supported $50,000 land allocation and no other acquisition-basis adjustments. Your preparer confirms $300,000 of acquisition basis excluding land. It became a rental in an earlier tax year; you then spent $30,000 on a remodel the next year. Cost Seg EZ's DIY tier is outside a published limit, since it excludes condos and requires renovations below $10,000. The other five offers stay at "check first" for renovation handling and any remaining scope or intake requirements. A reviewed report doesn't automatically cover every remodel.

That second case shows why renovation details matter. An offer can pass a price limit and still need a closer look at what changed and when.

What "DIY" really means

People use "DIY" for three different things. Know which one you're buying.

A few things that surprise people:

Some software models what you don't measure. KBKG's FAQ says its tool does not let you enter quantities such as cabinet lengths; it uses ratios and estimates. DIY Cost Seg's residential form, by contrast, asks for details such as building area, driveway dimensions, fencing, and component counts. Check the inputs before assuming the work is the same.

The form can be fast. The inputs are the work. DIY Cost Seg advertises a report in five minutes; Cost Seg EZ says its study process takes about 15 minutes. Those are company time claims. The real job is gathering the records, confirming basis and land value, and getting the property details and dates right.

Ask what the extra review changes. Software and reviewed reports can both use cost models. R.E. Cost Seg says its Rapid Report combines modeling with engineering review; its full study adds an inspection and more detailed analysis. Compare who checks the property, who supports the allocations, and what work the fee covers.

"Online" doesn't tell you much. A $495 software report and a $2,500 engineered study can both be "online." Ask who does the analysis and who reviews it.

A calculator is not a study

A free calculator gives you a rough guess so you can decide if a study is worth buying. It's not something to file with. KBKG's own calculator says its estimate "should not be used for filing tax returns."

A study is the report, schedules, and supporting analysis for your property.

A tax filing is what you and your preparer do with that report. The self-service report fee does not include filing your tax return.

Is DIY cost segregation allowed? What the IRS says

Yes. Here's what the IRS's own audit guide for cost segregation says:

• There is no standard format for a study.
• There are no prescribed qualifications for the person who prepares it. The guide adds that skill and experience can affect quality.
• A good study is one that is "both accurate and well-documented."
• It describes several study methods without requiring one approach for every property.
• It lists 13 principal elements of a quality study. They include a clear method, supporting records, asset classifications, and reconciliation to the supported costs.

Software still has to show its work. The report's format doesn't replace support for its costs and classifications.

One honest caveat. That guide is written to train IRS examiners. It is not the law, and it says so.

What software can't see

Software works from public records and what you type. It doesn't know you gutted the kitchen, added a deck, or turned the garage into a studio unless a field asks.

For a remodeled or unusual building, ask how the report captures those differences. An accurate address and purchase price won't fill in a missing renovation history.

Why two tools can give two answers

Two tools can use different assumptions, cost models, and inputs. A free preview can also cover different work from the report you ultimately buy.

Run the free preview on two tools using the same property facts and dates. If the numbers are far apart, ask each company which assumptions explain the gap. And remember: a bigger number is not a better number. It has to hold up.

When to pay for more help

Software is a fair choice when all of these are true:

• Your property type is on the tool's list.
• You're under the size limit with room to spare.
• You've done little or no renovation.
• You have your closing papers and a land value you can defend.
• Your tax preparer has said they'll work from a software report.

Step up when any one of these is true:

1. Your basis is over the limit, or close to it.
2. You spent real money on a remodel, most of all in a later year.
3. The building is mixed-use, unusual, or not on the tool's list.
4. The units aren't alike, or parts opened for rent on different dates.
5. Your tax preparer wants a person to stand behind the numbers.
6. You'd rather answer questions than own every input.
7. Two free previews disagree and nobody can tell you why.

What the next step up costs

Company-published prices, checked October 6, 2026. These are starting prices and flat fees for different scopes. They are not quotes for your property.

Rapid Report's limits need a close look. The product page lists basis of $1.2 million or less and renovations of $50,000 or less, while its FAQ uses "under" for those amounts. The renovation cap concerns relevant direct and indirect capital costs in the proposed study; total renovation spending alone may not settle that limit. Ask which costs count, without leaving costs out just to qualify. Its size limit is under 3,500 square feet; the services page specifies per unit. Units need to be identical or substantially similar, and different layouts or placed-in-service dates need confirmation. Ask before paying if any of those details could change the fit. The standard $600 Form 3115 fee can also have a rush premium.

Each step up buys more of someone else's work and judgment. It doesn't change the tax rules.

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What the whole job costs

The report is one cost. There can be three more:

• Audit support, if it's sold as an add-on.
• Form 3115 or other filing work, if your preparer says the change to earlier depreciation requires it. More on that below.
• Your tax preparer's time to review the report and put it on your return.

Here are the published fees to start from if an older property needs Form 3115, with each offer's advertised audit help. These are different price examples and starting fees, not five quotes for the same property or identical support.

"+ the form" means an unquoted fee if that filing is required. An unknown cost is not zero. These rows don't include any separately charged review or return-implementation work by your preparer; ask whether that work is already included in an existing fee.

Look at what happened. On the report alone, the $495 example is $404 below $899. If both prices apply to your property, Form 3115 is needed and included in the $899 offer, and every other fee is equal, a form-preparation fee above $404 reverses that fee comparison. You still need to compare the work and support included.

That's why the sticker price can fool you. Add up the whole job.

Is the fee worth it?

For a first-year illustration, divide the whole job's cost by the marginal tax rate that would apply to a fully usable additional deduction.

With only a $495 report fee and an assumed 32% marginal rate, $495 ÷ 0.32 = about $1,547. About $1,547 of additional deduction you can actually use this year would produce a tax reduction roughly equal to that fee. At a $899 fee, the number is about $2,809. Any extra review, filing, or support cost raises the threshold.

For the $1,450 total in the worked example below, $1,450 ÷ 0.32 = $4,531.25 of usable additional deduction.

This is first-year arithmetic, not a complete investment return. It assumes one marginal rate, ignores any tax treatment of the fees themselves, and doesn't value the smaller deductions left for later years or a future sale. The depreciation and loss-limit rules determine what can actually be used. Fit and "can I use it" still come first.

Compare two offers side by side

Got two prices in hand? Put them here. Leave anything you don't know as "Not quoted yet," and the worksheet will tell you the comparison isn't done.

Worked example. These numbers are made up to show how it works.

The report prices are $700 apart. The finished jobs are $100 apart. In this made-up example, the higher-cost option also takes five fewer owner hours. Those hours are assumptions, not measured provider results, and the prices don't establish equal report quality.

Now say nobody has quoted B's return work yet. Then B's known subtotal is $1,300, and you can't compare the two. Get the missing number first.

Audit support: read the fine print

"Audit support" sounds like one thing. It's not. Here's what each company says it covers.

CostSegregation.com. Included in the price. KBKG says it will answer the IRS's written questions about the report and can join calls with the agent.

Cost Seg EZ. Its pricing page lists $195 extra on the DIY and Engineer Reviewed tiers and includes protection with the full study. Its terms, published by MVO Consulting, apply to Cost Seg EZ too. They say to purchase optional protection within 14 days of report completion, tell the company within 10 days of an IRS audit notice, and notify it before responding to the IRS—even if the study isn't mentioned. Support is limited to its report while the company remains in business; preapproved travel costs can be extra. Get the scope in writing, including how the full-study inclusion fits those terms.

DIY Cost Seg. $295 extra on its order form, and you can only buy it at checkout. Its FAQ lists three ways to lose it:

• You don't tell them within 5 business days of the first IRS letter. That's any audit letter, not only one about the study.
• You contact the IRS before you tell them.
• You can't give them detailed photos or video of the property.

Skip the add-on and get audited? They say they may still help, starting at $1,995, if they have time. They also say they can't be your representative. The terms require property evidence as directed, including before and after changes. Travel and some additional work can cost extra.

RentalWriteOff. Included, with a cap. Its terms cover up to two hours within five years of delivery. Support beyond two hours may be provided at $300 an hour. You must give prompt notice and authorize communication with the taxing authority. It does not include representing you or paying any tax, interest, or penalties.

R.E. Cost Seg. Its published scope covers written answers about its study. It does not cover representing you before the IRS, testifying, or preparing or amending your return.

Don't assume study support includes representation. If representation is needed, confirm who is authorized to provide it and whether it's a separate engagement. Preparing your return does not give every preparer the same rights to represent you before the IRS.

Ask every company one question: "If the IRS questions this study, exactly what will you do at no extra charge, and what's left for my tax preparer?"

We can't tell you whether a study raises or lowers your odds of an audit. We haven't found a solid source either way.

How to do a DIY cost segregation study: 8 steps

1. Ask your tax preparer two questions first. Can I use the extra deduction this year? Will you work from a software report? There's a note you can copy below.

2. Pull your papers. You'll want the closing statement, the purchase contract, an appraisal if you have one, your current depreciation schedule, and receipts for any remodel.

3. Set the land value and confirm the basis. Land can't be depreciated, so this number matters. IRS Publication 551 says to split a combined land-and-building price using their relative fair market values. If you're not sure of those, it says assessed values can support the allocation. Don't just guess 20%. Certain closing costs and other adjustments can change basis; a down payment is not the property's basis. Conversions from personal use, gifts, inheritances, and exchanges can follow different rules. Have your preparer confirm the number the report should use.

4. Write down your dates. The day you bought it and the day it was ready to rent can be different. A remodel done later has its own date. Tell the tool the real story, not just "a rental bought for $400,000."

5. Check the fit. Use the fit check above. Drop any tool your property doesn't fit.

6. Run two free previews. Use the same property facts and dates, compare the splits, and ask about a big gap. A free estimate still isn't a filing-ready study.

7. Buy one report. Decide on audit support at checkout. With DIY Cost Seg you can't add it later.

8. Hand it over and keep the file. Give your preparer the report and schedules. Then keep everything: the report, what you typed in, the closing papers, your land value support, and dated photos. The IRS says generally to keep property records until the time limit runs out for the year you sell or dispose of the property. That can be many years.

If you're doing it truly by hand

You can. But you have to be able to show where every number came from. Here's the short version of the job.

Sort what you own into IRS classes. These are general examples under the General Depreciation System (GDS), from IRS Publication 527 and Publication 946:

These are general examples. They don't mean every floor, cabinet, or wire in your building lands in a short class. Required or elected use of the Alternative Depreciation System can change the recovery periods.

Put a cost on each group, and show how. Use real invoices when you have them. When you estimate, write down the source and the math. Today's store price for a new fridge, by itself, doesn't establish the allocated basis of a fridge that came with a ten-year-old house. The IRS guide explains why an acquisition estimate needs to account for condition and obsolescence as well as cost.

Make the total match. Here's a made-up acquisition example. Assume a $500,000 purchase entirely for rental use, a supported $100,000 land allocation, no other basis adjustments, and substantiated costs for the asset groups:

$60,000 + $20,000 + $320,000 = $400,000 of depreciable basis. Add the $100,000 of land and you're back at the $500,000 acquisition cost in this example. In a real study, reconcile to the correct supported basis, including any capitalizable costs or other adjustments. If the pieces don't match that basis, don't force it. Find the difference.

Those amounts only show the adding-up. They are not suggested percentages.

If you can't back up the costs and the classes, that's your sign to get help. Buying software doesn't fix missing evidence by itself. The IRS guide flags unsupported rule-of-thumb allocations as a problem; a flat percentage with nothing behind it doesn't substantiate your deduction.

Three tax checks before you pay

Software can't answer these. Your tax preparer can.

1. Can you use the deduction this year?

Rental losses are usually "passive." The passive loss rules can stop you from using them against your paycheck. A loss suspended under those rules generally carries forward, but it may not cut your tax now. At-risk and other loss limits can also apply.

Here's the difference. Assume a study produces $10,000 of additional depreciation and the marginal rate applying to that deduction is 24%.

• If you can use all of it: $10,000 × 0.24 = $2,400 less tax this year.
• If none of it is usable yet: $0 less tax this year.

Same report. Very different year.

Short-term rental owners: an average customer use of seven days or less is an exception to treatment as a rental activity under these passive-activity rules. It does not, by itself, let you write the loss off against your wages. Material participation and other loss limits still matter. It also doesn't, by itself, set the building's depreciation life. Ask.

2. Does bonus depreciation apply to your dates?

Under current federal rules, 100% bonus depreciation is available for qualifying property acquired and placed in service after January 19, 2025, subject to the eligibility rules and elections (IRS Notice 2026-11). Earlier property follows the rules for its acquisition and placed-in-service dates. Some earlier years also allowed 100%; an older purchase does not automatically mean a lower percentage.

Two cautions:

• For the rental and commercial properties compared here, bonus can apply to eligible shorter-life components. A cost segregation report does not make the ordinary 27.5- or 39-year building qualify for bonus.
• Buying a study this year doesn't reset the acquisition or placed-in-service date. The acquisition rules can also depend on a written binding contract or construction history, not just the closing date.

KBKG's calculator says its estimate assumes bonus depreciation applies. Check that the assumption matches your acquisition and placed-in-service dates, the assets, and any elections. Also ask whether your state follows the federal rule. Not every state does; for example, California's Franchise Tax Board explains that California does not conform to this federal bonus-depreciation provision.

3. Have you owned it for a while?

You can still do a study on a property you've owned for years. But catching up on past depreciation can require an accounting-method change, often using Form 3115. An amended return or another correction procedure can be appropriate in other cases. The IRS depreciation guidance distinguishes correcting an error from changing an adopted accounting method. Owning the property in an earlier year alone doesn't tell you which filing is required.

Three things get mixed up here. They're different:

A company might give you one, two, or none of these. KBKG gives you the math. RentalWriteOff includes the form for eligible properties. R.E. Cost Seg publishes a $600 standard form-preparation fee. Confirm who completes the remaining filing work under the Form 3115 instructions; a prepared package isn't proof that it has been filed.

And if you sell

Faster depreciation now reduces adjusted basis and can change the tax when you sell. Depreciation recapture and the treatment of gain depend on the asset category and facts; there isn't one recapture rate for every item. If you plan to sell in a few years, have your preparer run that math before you buy a study.

Send this to your tax preparer first

One email can save you from buying a report nobody will use. Copy this, fill in the blanks, and send it to whoever does your taxes.

Subject: Before I buy a DIY or online cost segregation report

I'm looking at a cost segregation report for this property:

Property address and type:
Purchase price and closing date:
Date it was ready to rent or available for business use:
Renovations since purchase (amount and year):
Furniture or appliances I bought separately:
The report(s) I'm considering:

Before I pay, can you tell me:

1. Would extra depreciation lower my tax this year, or would the loss be limited or carried forward?
2. Will you work from a software report? Is there a provider you prefer or won't use?
3. What do you need to see in the report (asset list, how the numbers were made, a total that matches my basis)?
4. What land allocation and depreciable basis should I use, including relevant closing costs and improvements?
5. Based on the placed-in-service dates and prior returns, does this need Form 3115, an amended return, or another filing? What would you charge?
6. What will you charge to review the report and put it on my return?
7. Does my state follow the federal bonus depreciation rules?
8. If I sell in a few years, how does that change the math?
9. If the IRS asks about the report, who answers?

Thanks. I'll confirm the provider's final price and support terms before I buy.

Talking to a provider too? We keep a separate list of questions to ask each provider.

Questions people still ask

Can I use Excel or AI to do my own cost segregation?

You can use them to organize your records and check your math. They can't prove a cost or a class is right. Every allocation needs a traceable record or a documented estimating method and cost source. If you can't support a number, resolve it before filing. Don't let a nice-looking spreadsheet stand in for proof.

Is there free cost segregation software?

There are free estimates. Every report-producing tool we checked charges for the report. The worksheets on this page are free, but they compare fees and limits. They don't make a study.

Can I get a refund if the report doesn't fit?

Don't count on it. RentalWriteOff's terms give a full refund if you cancel before work begins. After delivery, the stated exceptions are duplicate charges or a material error the company cannot correct. Cost Seg EZ's terms say fees are nonrefundable except where law requires otherwise; DIY Cost Seg's terms also state a nonrefund policy. For KBKG and R.E. Cost Seg, check the applicable product or engagement terms before paying.

A correction policy is different from a refund. KBKG permits five report modifications after checkout, and DIY Cost Seg charges $49 for input corrections. Cost Seg EZ promises certain company-initiated report changes without an extra fee; that does not establish a free owner-typo correction policy. So check the fit and ask your preparer before you buy.

Is DIY Cost Seg the same as DIYCostSegregation.com?

No. They're different companies with similar names. DIYCostSeg.com is the self-service tool in the table above, operated by Cost Segregation Specialists Inc. DIYCostSegregation.com is run by O'Connor. There, you gather the information and their team prepares the report.

I bought furniture and appliances separately. Do I need a study for those?

Usually not just to establish their separate costs. An invoice already provides a cost record, and your preparer can determine depreciation or any applicable expensing treatment. A study often allocates a combined building purchase or construction cost among asset classes. Just make sure separately purchased items aren't counted again in the study. IRS Publication 527 explains depreciation of rental furnishings and improvements.

I have five or more units. Can I still use software?

Maybe. DIY Cost Seg sends 5+ units to its commercial form, from $1,295. KBKG lists multifamily but doesn't publish a unit limit. RentalWriteOff and the Rapid Report stop at four units.

I own several small rentals. Is there a bulk price?

The tools here generally price reports by property or study. KBKG advertises a loyalty discount of up to 20%. Ask which purchases qualify and whether another provider can quote your portfolio together. Separate basis and asset records still matter; there isn't a universal rule that every property must be sold as a separate report.

How we checked this page

We read each company's own website for prices, limits, and terms on October 6, 2026. Tax points come from IRS and state tax-agency guidance, linked where they're used.

When a company words a limit two ways, we show both. When a company doesn't publish something, we say "not published." We don't fill in a guess.

We have not bought or tested these providers' report services. What the companies say about their methods, reviews, and support is their claim.

Every provider link on this page is unpaid. If that changes, the link will say so. See our methodology and editorial standards. Spot a mistake? Send a correction.

This page is general information. It is not tax advice. Your tax preparer is the right person for questions about your return.

Pick the smallest study that fully covers your property

If your property fits a DIY tool and your preparer is on board, go check your price:

See software pricing See DIY Cost Seg pricing See Cost Seg EZ pricing

If it doesn't fit, or you want a person on it, compare the next level up:

Find My Cost Seg Provider

Still not sure the deduction helps you? Copy the note for your preparer first. Confirm that before paying.