How does WeCostSeg coordinate with my CPA?

Every engagement follows the three-touch CPA Coordination Protocol. Preliminary analysis CC'd to your CPA on intake, draft report shared five business days before final delivery, and Form 3115 filing coordinated when a Section 481(a) adjustment applies.

Does OBBBA's 100% bonus apply to my acquisition?

100% applies to property under a binding contract on or after January 20, 2025 per Public Law 119-21. Property under a binding contract on or before January 19, 2025 stays on the legacy phase-down: 40% in 2025, 20% in 2026, 0% in 2027 and after.

Is audit defense included?

Yes. Every WeCostSeg engagement includes five years of written audit defense at no extra charge, aligned to the 13 Principal Elements of a Quality Cost Segregation Study under IRS Publication 5653 Chapter 4.

Can I get a free preliminary analysis?

Yes. Submit property details via the free proposal form or WhatsApp. Engineer-reviewed estimate returned within four business hours during US Eastern hours.

IRS Pub 5653 February 2025 Update: What Changed

By Zawwad Ul Sami, Founder, WeCostSegPublished: 2026-05-14Last updated: 2026-05-14

The February 2025 edition of IRS Publication 5653 (Cost Segregation Audit Techniques Guide) incorporates the OBBBA bonus depreciation changes, explicitly addresses virtual site inspections, updates the 13 Principal Elements references, and adds clarifications around the detailed engineering approach. The Guide remains the authoritative IRS reference for cost segregation methodology.

OBBBA integration

The 2025 edition references the OBBBA bonus depreciation changes throughout. Sections discussing bonus depreciation are updated to reflect the permanent 100% regime under amended Section 168(k) and the legacy phase-down for pre-cliff binding contracts.

The Section 168(n) Qualified Production Property addition is referenced in the chapters covering nonresidential real property.

Virtual inspection guidance

The 2025 edition explicitly addresses virtual site inspections. The Guide states that virtual inspections via video walkthrough are acceptable when the engineer documents the methodology and limitations.

Pre-2025 editions did not address virtual inspections, leaving the methodology unclear. The 2025 update validates virtual inspection as a defensible methodology for residential properties.

13 Principal Elements clarifications

Chapter 4's 13 Principal Elements remain the quality standard. The 2025 update adds clarifications around documentation requirements, particularly for properties acquired without detailed construction cost records.

Element #2 (detailed cost-by-cost itemization) and Element #4 (allocation of indirect costs) have updated examples reflecting current real estate transaction patterns.

Frequently asked questions

How does WeCostSeg coordinate with my CPA?: Every engagement follows the three-touch CPA Coordination Protocol. Preliminary analysis CC'd to your CPA on intake, draft report shared five business days before final delivery, and Form 3115 filing coordinated when a Section 481(a) adjustment applies.
Does OBBBA's 100% bonus apply to my acquisition?: 100% applies to property under a binding contract on or after January 20, 2025 per Public Law 119-21. Property under a binding contract on or before January 19, 2025 stays on the legacy phase-down: 40% in 2025, 20% in 2026, 0% in 2027 and after.
Is audit defense included?: Yes. Every WeCostSeg engagement includes five years of written audit defense at no extra charge, aligned to the 13 Principal Elements of a Quality Cost Segregation Study under IRS Publication 5653 Chapter 4.
Can I get a free preliminary analysis?: Yes. Submit property details via the free proposal form or WhatsApp. Engineer-reviewed estimate returned within four business hours during US Eastern hours.

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About the author

Zawwad Ul Sami, Founder

Zawwad Ul Sami is the founder of WeCostSeg, a founder-led cost segregation firm serving real estate investors across the US. He focuses on strategy, pricing, and the firm's overall direction.