How a WeCostSeg Cost Segregation Study Works in 4 Steps

Four steps from inquiry to tax savings. Most residential engagements complete in three to four weeks elapsed time. Most commercial engagements complete in four to six weeks.

Step 1: Free preliminary analysis (4 business hours)

Send property details via the free proposal form or WhatsApp. We need property type, purchase price, placed-in-service date or binding contract date, and your approximate combined federal and state marginal tax rate. Our engineer returns a written estimate of your first-year deduction and a quoted study fee within four business hours during US Eastern hours. No payment, no contract.

Step 2: Sign engagement (same day)

When the estimate makes sense, you sign a one-page engagement letter and upload documentation: closing statement, appraisal (if available), blueprints (if available), photos of post-purchase improvements, and a list of personal property included in the sale. Your CPA is CC'd on the engagement per the CPA Coordination Protocol.

Step 3: Engineering review (2 to 4 weeks)

Virtual or in-person site inspection. Our engineer reviews documentation, walks the property (with the owner or property manager guiding via video for residential studies, or in person for commercial), and documents each component per the 13 Principal Elements in IRS Publication 5653. Assets are classified into 5-year, 7-year, 15-year, and real property recovery periods using the detailed engineering approach from actual cost records.

Step 4: Report and CPA handoff (1 week)

Draft report shared with your CPA five business days before final delivery. CPA review on allocations. Final engineer-signed report delivered as PDF plus an Excel fixed asset schedule. If it is a look-back study, Form 3115 is included and ready to attach to the current return with the Section 481(a) catch-up adjustment. Five years of audit defense begins at delivery.

Frequently asked questions

How long does the WeCostSeg process take from inquiry to final report?

Residential engagements complete in 3 to 4 weeks elapsed. Commercial engagements complete in 4 to 6 weeks. The four steps are: free preliminary analysis in 4 business hours, engagement signed same day, engineering review over 2 to 4 weeks, and final report plus CPA handoff in the last week. The Rapid Report tier delivers in 5 to 10 business days.

How quickly does WeCostSeg respond to a free proposal request?

Within 4 business hours during US Eastern hours. The response is engineer-reviewed, not automated. It includes a written estimate of your first-year deduction and a quoted study fee. There is no payment or contract required to receive the estimate. Requests submitted outside US Eastern business hours receive the response on the next business morning.

What information does WeCostSeg need for the free preliminary analysis?

Four inputs: property type, purchase price, placed-in-service date or binding contract date, and your approximate combined federal and state marginal tax rate. Send these via the free proposal form or WhatsApp. An engineer runs the preliminary reclassification against benchmark component percentages by property type and returns a written estimate within 4 business hours.

Is the site inspection done in person or virtually?

Residential studies use a virtual walkthrough where the owner or property manager guides the engineer via video. Commercial studies use an in-person inspection. Every asset is photographed and classified into 5-year, 7-year, 15-year, or real property recovery periods per the detailed engineering approach from actual cost records in Chapter 3 of IRS Publication 5653.

Who reviews the final cost segregation report?

Every report is engineer-signed. The draft report is shared with your CPA five business days before final delivery under the CPA Coordination Protocol. Your CPA reviews the allocations and Form 3115 (if a look-back applies). The final report ships as a PDF plus an Excel fixed asset schedule ready to import into your CPA's depreciation software.

Does WeCostSeg prepare Form 3115 for look-back studies?

Yes. Form 3115 (Application for Change in Accounting Method) with Designated Change Number 7 is included at no extra charge with every Fully Engineered look-back study. The Section 481(a) catch-up adjustment posts in the year of change without amending prior returns. WeCostSeg prepares both the original filing and the Ogden duplicate per Rev. Proc. 2015-13.

When does the 5-year audit defense window begin?

The 5-year audit defense window begins on the date the engineer-signed final report is delivered. If the IRS opens an examination within those five years, WeCostSeg produces archived photographs, source documents, and methodology support at no additional charge. The defense aligns to the 13 Principal Elements from Chapter 4 of IRS Publication 5653.