Cost Segregation Advisory

Your property holds
hidden depreciation.
We find it.

Engineering-based cost segregation studies that reclassify your property's basis, accelerate your tax deductions, and put real money back in your hands — this year.

$800K
Avg. reclassifiable basis on $2M property
5–10×
Typical return on study fee in year one
28 days
Average engagement to delivery
The Opportunity

Most property owners are
overpaying their taxes.

The IRS assumes your building depreciates evenly over 39 years. But components inside it — flooring, lighting, HVAC systems, land improvements — wear out much faster. A cost segregation study identifies those components and moves them into 5, 7, or 15-year depreciation classes, generating accelerated deductions worth far more than the cost of the study itself.

01
Engineering-Based Analysis
Every study is built on physical site inspection and component-level cost analysis — not desktop estimates or rule-of-thumb percentages. Our licensed trade contractor panel covers electrical, HVAC, and plumbing systems with professional authority.
IRS ATG Compliant
02
CPA-Reviewed Every Time
Every study is reviewed by our CPA partner before delivery. Your tax preparer receives a clean, IRS-compliant work product ready to implement — with a licensed CPA's acknowledgment behind it.
Tax Ready
03
Zero Variance Guarantee
Every dollar allocated ties back to your total depreciable basis with zero variance. We do not deliver a study until the reconciliation is clean and every classification is documented and defensible.
Audit Defensible
Estimate Your Benefit
ROI Calculator
Enter your property details for a rough estimate of the benefit. This is not a substitute for a formal feasibility analysis.
What We Do

Cost Segregation Services

We offer a focused range of engineering-based tax advisory services for real estate investors, developers, and commercial property owners.

01
Standard Cost Segregation Study
Full engineering analysis on newly acquired or constructed property. Physical site inspection, component-level allocation, MACRS depreciation schedules, and complete IRS ATG-compliant deliverable packet. Typical fee: $5,000–$10,000. Typical first-year benefit: $30,000–$150,000+.
Most Common
02
Look-Back Study
Applied retroactively to property already in service. Recover all missed accelerated depreciation in a single current-year catch-up deduction via a Section 481(a) adjustment — no amended returns required. Our CPA partner coordinates Form 3115 filing. Typical fee: $4,000–$8,000.
No Amended Returns
03
Feasibility Analysis
Before committing to a full study, we run a complimentary back-of-envelope analysis to confirm the benefit justifies the fee. Most properties above $500K in depreciable basis qualify. We will tell you honestly if yours does not.
Free
04
Multi-Property Portfolio
Investors with multiple properties receive coordinated portfolio analysis identifying which assets offer the highest reclassification opportunities and the optimal sequencing strategy for maximum cumulative tax benefit across the portfolio.
Custom Pricing
05
CPA Collaboration Program
For CPAs who want to offer cost segregation to their clients without building in-house capability. We handle the engineering and deliver a CPA-ready study. Your client gets the benefit. You get the credit. Referral fee structure available.
For CPAs
06
Audit Defense Support
In the event of an IRS inquiry related to a study we prepared, we provide full documentation support including workpapers, field notes, contractor inspection reports, and expert response preparation. Our studies are built to withstand scrutiny from day one.
Included
Who Qualifies

Does your property qualify?

Almost any depreciable real property above $500,000 in basis qualifies. A study makes the most sense when you have a meaningful tax liability to offset and plan to hold the property long enough to realize the benefit.

Commercial Office & Retail
One of the strongest categories. Typically 28–35% reclassifiable.
Industrial & Warehouse
Process equipment and specialty electrical generate strong 5-year allocations.
Medical & Dental Offices
Specialty plumbing, equipment, and millwork make medical offices excellent candidates.
Restaurants & Hospitality
Highest reclassification rates — often 35–45% due to specialty kitchen and HVAC systems.
Multi-Family & STR
Apartment complexes, Airbnb, and VRBO properties with values above $750K qualify well.
New Construction
The most impactful application — 100% of costs are classified for the first time.
How We Work

Eight steps. Zero shortcuts.

Every study follows the same disciplined process — from document gathering through CPA review and final delivery. No step is optional. No step is skipped.

01
Engagement & Document Collection
Signed engagement letter and initial deposit. We immediately send a document checklist covering your PSA, HUD-1, construction contracts, blueprints, appraisals, and prior depreciation schedules. Clean, complete documents are the foundation of every defensible study.
02
Physical Site Inspection
Our licensed contractor panel conducts a physical walkthrough of the property — photographing, measuring, and documenting every material component. Electrical, HVAC, and plumbing systems are inspected by licensed professionals in each discipline. Desktop-only studies are not how we operate.
03
Engineering Analysis & Classification
Every component identified during inspection is allocated to its correct asset class — 5-year, 7-year, 15-year, or 39-year — based on function, mobility, and IRC §§ 1245/1250. Unit costs are supported by RSMeans, Marshall & Swift, and actual invoice backup where available.
04
Depreciation Schedules
Year-by-year MACRS depreciation calculated for each asset class and compared against straight-line 39-year baseline. NPV of the benefit quantified. Bonus depreciation under IRC § 168(k) analyzed and first-year impact isolated — often the most compelling headline number for the client.
05
Cost Basis Reconciliation
Every dollar allocated ties back to the total depreciable basis. Variance equals zero — always. If it does not, we find the error and fix it before moving forward. This reconciliation is the first thing a CPA or IRS auditor checks.
06
Narrative Drafting
Methodology statement, site inspection summary, source document narrative, and audit defense statement are drafted to IRS ATG standards. The narrative sections are not filler — they are the legal framework that protects the study under scrutiny.
07
CPA Review & Coordination
Draft study shared with our CPA partner for tax compliance review. Bonus depreciation confirmed, Form 3115 assessed, and all feedback incorporated before finalization. Your own CPA receives the completed study with everything needed to implement it on your return.
08
Final Signatures & Delivery
Preparer, CPA, and taxpayer signatures obtained. Complete bound deliverable packet and searchable PDF delivered to you and your tax preparer. Full workpapers retained in our secure system for seven years for audit defense.
The Firm

Built at the intersection of real estate, tax, and engineering.

Most cost segregation firms enter the market from the accounting or engineering side. We enter from the real estate relationship side — which is where the clients actually are. That origination advantage, combined with rigorous methodology and CPA-backed delivery, is what makes The Basis Variance Firm different.

Managing Principal
Jahn Qazi
Real Estate Professional & Cost Segregation Specialist
Active real estate professional with deep relationships across the investor, developer, and commercial property owner community. Manages every engagement from client origination through final delivery — serving as project manager, engineering analyst, and primary client contact throughout the study process.
Real Estate Cost Segregation Project Management
CPA Partner
TAX PROFESSIONALS
Licensed CPAs & Enrolled Agents
Every completed cost segregation study is reviewed by a licensed tax professional — either a Certified Public Accountant (CPA) or an IRS-credentialed Enrolled Agent — prior to delivery. This review confirms tax accuracy, IRS compliance, and implementation readiness, including bonus depreciation eligibility and Form 3115 requirements for look-back studies. A Tax Review Acknowledgment accompanies every delivered packet.
CPA Licensed Tax Strategy IRS Compliance
Engineering Panel
Licensed Trade Contractors
Electrical · HVAC · Plumbing
State-licensed contractors in electrical, HVAC, and plumbing disciplines conduct the physical site inspections and provide signed Technical Inspection Reports for their respective systems. Their professional credentials are documented in every study's methodology section and available for IRS audit defense.
Licensed Electrical Licensed HVAC Licensed Plumbing
Our Philosophy

Quality over volume.

We do not chase volume. We do not cut corners on site inspections. We do not deliver a study with a non-zero basis variance. We do not sign work we cannot defend under audit.

Every engagement is treated as if the IRS examiner is already assigned. That is not paranoia — it is the standard that every legitimate cost segregation study should be held to, and it is what protects you when it matters.

100%
of studies include physical site inspection. No exceptions.
$0
Cost basis variance tolerance. Every study reconciles to zero before delivery.
7 yrs
All workpapers, photos, and source documents retained for audit defense.
Common Questions

Frequently Asked Questions

Everything you need to know before, during, and after your engagement.

Have a question that isn't answered here?

Get Started

Request a free feasibility estimate.

Tell us about your property and we will run a back-of-envelope analysis to confirm whether a full study makes financial sense. No obligation, no sales pressure.

Response Time
Within 1 Business Day
Feasibility Analysis
Complimentary — No Obligation
Study Delivery
3–4 Weeks from Engagement
Email
jq@basisvariance.com
Phone
Cell: (703) 401 - 6696
Office: (202) 412 - 4907
CPA Collaboration
CPAs looking to offer cost segregation to their clients — we partner directly with your practice. Referral fee structure available.