Look-Back Cost Segregation Studies for Properties Owned 1+ Years

Already own your property? Capture five or more years of missed depreciation in the current tax year with a look-back study and Form 3115. No amended returns required.

Service specifications

$2,495 starting. Turnaround: Same as a fresh study (2 to 4 weeks)..

Best suited for: Owners of rental and commercial property who never performed cost seg on a property they have owned for one or more tax years.

This tier follows the WeCostSeg engineering methodology described in our methodology page and aligned to the 13 Principal Elements of a Quality Cost Segregation Study in IRS Publication 5653 Chapter 4. Five years of written audit defense is included with every engagement at no additional charge. The CPA Coordination Protocol applies with preliminary analysis, draft review, and Form 3115 prep all coordinated with your tax preparer.

How this tier compares to the other WeCostSeg tiers

Every tier includes the same five years of audit defense, the same 13 Principal Elements compliance under IRS Pub 5653, and the same CPA Coordination Protocol. The differences are scope, inspection depth, and basis size addressed. The free preliminary analysis is the simplest way to confirm which tier fits a specific property before engagement.

What is included in this engagement

• Same engineering rigor as a current-year study
• Section 481(a) catch-up adjustment included
• Form 3115 prepared and included at no extra charge
• Five years of audit defense
• Three-touch CPA Coordination Protocol

Every deliverable in the list above is part of the standard scope. The engineer-signed report ships with both the methodology disclosure and the supporting documentation archive (photos, source records, computation worksheets) that constitute the quality study under Pub 5653 Chapter 4. The five-year audit defense window begins on delivery of the final report and applies at no additional cost.

Frequently asked questions

Is there a deadline for a look-back study?

No statutory deadline. The Section 481(a) catch-up can be claimed in any year the taxpayer is still depreciating the property. Practically, doing it earlier is better because the catch-up amount is larger.

What is the catch-up amount on a property I've owned for 5 years?

Depends on basis and property type. As a rough order of magnitude, on a $1M depreciable basis residential rental, the 5-year catch-up after cost seg can reach $100K to $200K in a single year, all deducted in the current tax return.

Does this service include five years of audit defense?

Yes. Every WeCostSeg engagement includes five years of written audit defense at no additional cost. The defense aligns to the 13 Principal Elements of a Quality Cost Segregation Study under IRS Publication 5653 Chapter 4 and applies to correspondence audits, office audits, and field audits initiated within the five-year window.

How does WeCostSeg coordinate with my CPA?

Every engagement follows the three-touch CPA Coordination Protocol. We send a preliminary analysis to your CPA on intake, share the draft report five business days before final delivery, and coordinate Form 3115 filing timing when a Section 481(a) adjustment applies. Your CPA never pays a fee.

What OBBBA bonus depreciation rate will apply?

Property acquired and placed in service after January 19, 2025 under Public Law 119-21 (OBBBA) qualifies for 100% bonus depreciation on the 5-year and 15-year reclassified portion. Property under a binding contract on or before January 19, 2025 stays on the legacy phase-down: 40% bonus in 2025, 20% in 2026, 0% thereafter.

Can I get a free preliminary analysis before engaging?

Yes. Submit your property details via the free proposal form or WhatsApp. Our engineer returns a written estimate of your first-year deduction within four business hours during US Eastern hours. No payment, no contract, no obligation to proceed.

What methodology does the report use?

The detailed engineering approach from actual cost records, described in Chapter 3 of IRS Publication 5653 (Cost Segregation Audit Techniques Guide, February 2025 edition). The Guide identifies this approach as the most defensible methodology among the six it describes. The rule-of-thumb approach is identified as the least defensible.

Will this service work for a property held in an LLC or partnership?

Yes. The engineering analysis runs against the property regardless of holding entity. The Section 481(a) adjustment (for look-back studies) flows through K-1 to partners. Cost basis attribution to the holding entity follows the partnership's allocation rules.

How is pricing determined?

Standard tiers apply: $795 Rapid Report for residential under $800K basis, $2,495 Fully Engineered Residential up to $2M basis, $2,995 and up for commercial properties. Larger commercial properties scale based on basis and complexity. We quote per property after the free preliminary analysis.