Why the Right Cost Segregation Partner Matters
Several years ago, I sat down with a CFO from a mid-sized real estate investment firm who admitted they had never used cost segregation. Their reasoning was simple: they assumed it was only worth the trouble for massive commercial projects. During our discussion, I introduced them to a provider who specialized in engineering-based studies tailored for multi-property portfolios. The first study alone accelerated over $1 million in depreciation deductions, immediately freeing up cash for reinvestment.
That meeting reinforced a lesson I had seen many times before: most decision-makers underestimate the impact of cost segregation, and the choice of provider makes all the difference. The right company not only maximizes tax savings but also ensures compliance, audit readiness, and strategic integration with broader financial goals.
The firms on this list represent the best options available in 2025.
Top 3 Quick Picks: 2025’s Best Cost Segregation Companies
1. RE Cost Seg: Best for Full-Service Tax Strategy Integration
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- National expertise, local insight
- Comprehensive engineering studies
- Clear ROI-focused deliverables
2. KBKG: Best for Complex, Multi-State Portfolios
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- Strong compliance expertise
- In-house engineering team
- Robust audit defense
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- CPA-focused collaboration
- Detailed documentation packages
- Consistent reporting quality
For a deeper look at all seven firms, including their specialties and how they compare, continue reading the full list below.
How to Choose the Right Cost Segregation Company
I once spoke with a property developer who chose the cheapest provider they could find. The study was rushed, the methodology poorly documented, and when the IRS requested supporting data, the provider was nowhere to be found.
They eventually had to pay for a second, more thorough study (at twice the cost). That experience reminded me that a low upfront fee can mask much higher long-term risks.
1. Verify Industry-Specific Experience
Choose a provider with proven experience in your property type, whether that’s retail, multifamily, industrial, or hospitality. Nuances in building use and asset categorization can significantly impact depreciation outcomes.
2. Understand Their Engineering Methodology
Look for companies using engineering-based studies with site visits, as opposed to purely data-driven estimates. This approach produces more accurate asset classifications and maximizes tax savings.
3. Check Audit Support and Compliance Standards
A reputable provider offers documented methodologies, clear workpapers, and representation in the event of an IRS audit. Avoid any firm unwilling to stand behind its work.
4. Evaluate Reporting Clarity and Deliverables
Quality providers deliver reports that are easy for both CPAs and property owners to interpret. Well-structured schedules and asset breakdowns help integrate results into broader tax strategy.
5. Assess Technology and Efficiency Tools
Some firms use proprietary software to streamline data gathering, asset tagging, and report delivery. These tools can reduce turnaround time without sacrificing accuracy.
The 7 Best Cost Segregation Companies in 2025
1. RE Cost Seg: Best for Full-Service Tax Strategy Integration
- Founded: 2022
- Headquarters: Houston, Texas
Why RE Cost Seg is the best cost segregation company: RE Cost Seg delivers more than just accelerated depreciation studies; they integrate cost segregation into a full tax strategy that aligns with a client’s broader financial goals. Their process combines engineering precision with tax planning expertise, ensuring property owners receive the maximum allowable deductions while maintaining full compliance with IRS guidelines.
Clients benefit from national reach paired with localized insight, making them equally effective for single-property owners and large portfolio managers. The firm’s deliverables are designed for clarity, so both internal finance teams and external CPAs can seamlessly integrate findings into tax filings.
With a focus on measurable ROI and long-term partnership, RE Cost Seg consistently ranks among the most trusted providers in the industry.
2. KBKG: Best for Complex, Multi-State Portfolios
- Founded: 1999
- Headquarters: Pasadena, California
KBKG combines technical depth and expansive reach in a way few peers do. Its team includes engineers and tax professionals who specialize in complex cost segregation studies, backed by tools like the Residential Cost Segregator®, calculators, and audit support capabilities.
Founded in 1999, the firm retains its national influence through offices in Pasadena, Los Angeles, Atlanta, Chicago, Dallas/Fort Worth, and New York, ensuring seamless service across multiple states. Clients benefit from a proven record in audit defense, leadership in industry standards, and an ability to navigate regulatory complexity across state lines.
3. McGuire Sponsel: Best for CPA Partnerships
- Founded: 2007
- Headquarters: Indianapolis, Indiana
Launched in 2007 to act as a seamless extension of CPA firms, McGuire Sponsel built its reputation on a foundation of respect for the CPA–client relationship and technical excellence in specialty tax services
Their cost segregation work, particularly praised for its engineering-backed methodology and audit-ready documentation, is trusted by more than 450 CPA firms across the U.S.
The firm’s team employs a combination of civil, structural, and architectural engineering expertise alongside deep tax code knowledge to deliver studies that align with IRS guidelines, including site visits, blueprint review, and classification rigour.
4. Engineered Tax Services: Best for Nationwide Engineering Precision
- Founded: 2001
- Headquarters: West Palm Beach, Florida
Founded in 2001 and based in West Palm Beach, Florida, Engineered Tax Services (ETS) is a licensed engineering firm that specializes in cost segregation studies delivered with technical rigor.
Under the leadership of founder Julio Gonzalez, ETS blends tax accounting with engineering, offering services backed by site visits, blueprint review, and detailed engineering methodologies.
ETS performs over 10,000 cost segregation and other specialty tax incentive studies annually, serving clients across the U.S. through a robust national footprint. Its Tele‑Engineering™ approach enables clients to conduct studies remotely via video devices, delivering precision without physical site visits.
5. CSSI (Cost Segregation Services, Inc): Best for Fast, Nationwide Coverage
- Founded: 2000
- Headquarters: Baton Rouge, Louisiana
CSSI has been delivering engineering-based cost segregation and specialty tax services (including R&D credits and 179D deductions) across all 50 states for over two decades
Since its founding, the firm has completed over 50,000 studies, helping clients unlock billions in tax savings.
The firm’s engineering-first methodology ensures compliance with IRS regulations while providing clear, actionable analysis. They offer a streamlined process, such as a no-cost initial analysis and quick turnaround, ideal for clients who need speed and accuracy across widespread property portfolios
6. Madison SPECS: Best for Real Estate Investors
- Founded: 2004
- Headquarters: Lakewood, New Jersey
Madison SPECS is an affiliate of Madison Commercial Real Estate Services (MCRES), focused exclusively on delivering engineering-based cost segregation studies for property owners and investors. Established in 2004 and based in Lakewood, New Jersey, the firm leverages a combined team of engineers and tax professionals to maximize depreciation benefits using sources like RS Means and decades of construction and tax experience.
Madison SPECS distinguishes itself through a client‑centric process: offering free feasibility analysis, thorough site inspections with photo documentation, blueprint reviews, and full audit‑ready deliverables, including detailed binders and high‑level summaries.
This level of thoroughness and transparency makes it especially appealing to investors who value both precision and partnership.
7. Duffy + Duffy Cost Segregation Services: Best for Manufacturing and Industrial Properties
- Founded: 2002
- Headquarters: Westlake (Cleveland area), Ohio
Founded in 2002 by CPA Dennis Duffy, Duffy + Duffy Cost Segregation Services was the first firm of its kind in Ohio and has since conducted engineering-based studies nationwide.
Headquartered in Westlake with a secondary office in Novi, Michigan, the team includes CPAs, construction engineers, and estimators, delivering cost segregation studies rooted in IRS case law and compliant with audit standards
The firm offers free feasibility analyses, focusing on delivering audit‑ready documentation and including strategies for LEED‑certified projects and complex commercial properties.
Finding the Right Partner for Maximum Tax Savings
Cost segregation can be one of the most impactful tax strategies available to property owners, but its value depends heavily on the expertise of the provider. The firms featured here represent a range of strengths, from multi-state compliance expertise to deep specialization in certain property types. Choosing a company with the right technical capabilities, documentation standards, and industry focus is essential to maximizing benefits while staying audit-ready.
The most effective cost segregation providers integrate seamlessly with your broader tax strategy, delivering results that go beyond accelerated depreciation to support long-term financial planning. Whether your portfolio is a single asset or a nationwide network of properties, the right partner can unlock significant cash flow and improve capital allocation in 2025 and beyond.
If you want to feature your cost segregation company on this list, email us or submit a form in the Top Choices section. After a thorough assessment, we’ll decide whether it’s a valuable addition.
