

designed to address residential rental property with a maximum of
$500,000 in depreciable basis.
DIY Cost Segregation Software for Smaller Residential Properties
The Residential Cost Segregator® is an online software program that allows CPA’s to generate custom reports in just minutes,
providing tax benefits to clients without hiring a specialist. The software is available for residential rental properties up to
6 units with a depreciable tax basis of $500,000 or less (purchase price less land).
Preview Your Tax Savings with KBKG's Residential Cost Segregator® Calculator
Try before you buy. Use our free preview calculator below to instantly estimate the benefits of the Residential Cost Segregator®.
Residential Properties
Available for rental homes, condos, townhomes and apartments up to 6 units with a depreciable tax basis of $500,000 or less (purchase price less land).
Easy to Use
A report generally takes less than 15 minutes to complete without the need to hire a 3rd party Cost Segregation engineer. Designed for CPAs, Tax Preparers, and Building Owners.
KBKG Audit Guarantee
We stand behind our reports. In the event of an IRS audit, KBKG will provide free audit support time at no additional charge for issues directly related to our report.
Backed by KBKG
A Cost Segregation report is only as good as the people standing behind its findings. KBKG employs one of the largest and most respected teams of Cost Segregation engineers in the US.
481(a) Adjustment
For properties acquired in prior years, optional 481(a) “missed deduction” calculation schedules are available for regular Federal and AMT.
*The cost of a report does not include your tax preparer’s fees to assist with information gathering, reviewing data, and implementation on your tax return. Please consult your tax advisor regarding additional fees.
Frequently Asked Questions
What’s the difference between a formal Cost Segregation study performed by experienced engineers and a Residential Cost Segregator® report?
For most buildings, a Cost Segregation study requires the knowledge of a Certified Cost Segregation Professional (CCSP) with an engineering background. This is because of variations in construction from one building to another as well as varied tax law depending on building types. The engineer physically inspects the property and performs construction quantity takeoffs to account for each building component. Empirical cost data is then used to reconstruct the cost of the entire property. The result is a report with schedules showing values that can be substantiated by the data collected by the engineer.
The Residential Cost Segregator® utilizes many of the same concepts, calculations, and data. Instead of an engineer, the Residential Cost Segregator® relies on data provided by the building owner. So if the building owner indicates the property has carpet in the bedrooms and was acquired with certain appliances, the software accounts for these items. The information provided is processed using KBKG’s proprietary algorithms and empirical data to generate a logical breakdown of costs for each major property component.
The Residential Cost Segregator® is designed specifically for properties too small to hire an experienced CCSP to analyze. Because every property is unique, it may not account for unusual items that exist and generally provides a more conservative allocation than may be available to the taxpayer. The Residential Cost Segregator® is not adequate for use to conduct a Cost Segregation study on larger, more complex properties.
What is Cost Segregation and why should I do it for my rental property?
Cost Segregation is a commonly used strategic tax planning tool that allows building owners who have constructed, purchased, expanded or remodeled real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
A Cost Segregation report for residential investment property dissects the purchase price of the property that would otherwise be depreciated over 27.5 years for income tax purposes.
• Accelerate Depreciation Deductions:
The primary goal of Cost Segregation is to identify all property-related costs that can be depreciated faster (typically over 5, 7 and 15 years).
• Retirement and Partial Disposition Deductions:
The secondary goal of Cost Segregation is to establish the depreciable tax value for each major building component that is likely to be replaced in the future. Examples include roof, windows, doors, bathroom fixtures, HVAC, etc. When a component is replaced, taxpayers need this information to claim a “retirement loss” or “partial disposition” deduction for its remaining depreciation.
Case Study
Property Details:
• 2 Story Residential Duplex
• Depreciable basis = $300,000
• Placed in Service two years ago
• Building Area: 2,000 SF
• Lot Size: 4,000 SF
Immediate benefits from reclassification to shorter tax lives:
• Additional deductions of $21,000 in the first year
• Additional deductions of $28,000 in the first 5 years
• Net present value of $7,500*
*Using a tax rate of 40% and 8% ROI. Does not include benefits from a future partial disposition of building components.
Free Webinar for CPAs
Cost Segregation Software Tools & Tax Strategies
Participate in a live demo for cost segregation software tools including the Residential Cost Segregator™ and the KBKG Partial Disposition Calculator.
Learn how to generate cost segregation reports in 3 easy steps for residential rental properties with a purchase price of $500k or less (excluding land).
Cost Segregation Tax Insights

KBKG to Speak at TXCPA Dallas Convergence 2022
05/04/2022Alex Martin, Transfer Pricing Principal, will be speaking at TXCPA Dallas Convergence on Monday, May 16th. He’ll be joined by Bill Taylor, William Long, Matthew Geltz, Mike Cornell, and Emily Kennedy from our Dallas Fort-Worth office. This event is taking place at the Omni Frisco Hotel in Frisco, Texas. About the TXCPA Dallas Convergence TXCPA … Read More

KBKG to Speak at SCACPA Spring Splash Conference 2022
05/02/2022Our Research and Development Tax Credit Director, Ian Williams, is speaking while Principal, Jonathan Tucker, and Regional Director Chad Niehaus are representing KBKG at the SCACPA Spring Splash Conference 2022. This event takes place from May 12th and May 13th in Spartanburg, SC. Our Southeast team specializes in Cost Segregation, Green Building Tax Incentives (45L … Read More

KBKG Speaking at New York Multifamily Summit 2022
05/02/2022Our Cost Segregation & Fixed Assets Principal, Sumit Sharma, will be speaking at NYMS this year during the Value Add panel discussion. Along with him, Alexis McClellan and Justin Brumfield will represent KBKG. The New York Multifamily Summit will take place on Thursday, May 12th in New York, New York. This event is New York’s … Read More

Webinars For May 2022
05/02/2022Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email [email protected] Research & Development Tax Credits 05/03/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More

KBKG Representing at TXCPA Austin Accounting & Finance Leaders Conference 2022
04/07/2022Eddie Price, Matthew Geltz, and Bill Taylor will be representing KBKG at the TXCPA Austin Accounting & Finance Leaders Conference on Thursday, April 21st in Austin, Texas. Our Texas team specializes in Cost Segregation, Green Building Tax Incentives (45L and 179D), Transfer Pricing, and more.. About the TXCPA Austin Accounting & Finance Leaders Conference The … Read More

KBKG Promotes Sumit Sharma to Principal Overseeing Cost Segregation in the Northeast
03/21/2022PASADENA, CA, – Nationwide tax specialty firm KBKG promoted Sumit Sharma, CCSP, to principal effective January 1, 2022. Sumit leads the firm’s cost segregation practice in the northeast out of their Manhattan-based office. As a Principal, Sumit specializes in Cost Segregation and Fixed Assets. Sumit has over 17 years of experience conducting fixed asset depreciation … Read More

KBKG Representing at Hunter Investment Conference 2022
03/09/2022Our Cost Segregation Director, Amar Patel, will be representing us at the Hunter Hotel Investment Conference on Tuesday, March 22nd through Thursday, March 24th in Atlanta, Georgia. As providers of Cost Segregation, 45L Tax Credits, Employee Retention Tax Credits, and more; we offer a suite of unique tax saving strategies for the real estate industry. … Read More

Feature: How Can Savvy Property Owners Save Millions in Taxes Legally?
02/09/2022As featured in the Dave Lorenzo, Inside BS Podcast. Our Cost Segregation Principal, Lester Cook, was featured in the Inside BS Show, a podcast hosted by Dave Lorenzo, Consultative Sales Expert at the Dave Lorenzo Company, LLC. Lester shares with Dave the ways he helps property owners legally take advantage of the tax code to … Read More

KBKG Speaking at Ohio Chamber of Commerce – 2022 Business Tax Conference
01/24/2022KBKG spoke at the Ohio Chamber of Commerce 2022 Business Tax Conference on Tuesday, January 25th and Wednesday, January 26th. Lester Cook presented on Cost Segregation, Paul McVoy spoke on R&D Tax Credits, and Todd French represented the firm at the exhibit booth. See below for session details. Tuesday, January 25th | 1:45PM EST Cost … Read More

KBKG Tax Insight: Illinois Decouples from Bonus Depreciation for 2021 Tax Year and Forward
01/13/2022Back on June 17, 2021, Governor J.B. Pritzker signed into law SB2017, the state’s FY 2022 budget legislation. Among many other noteworthy items within that piece of legislation, Illinois officially decouples from federal bonus depreciation for tax years ending on or after December 31, 2021. Historically, the State of Illinois has decoupled from bonus depreciation … Read More

Feature: What Is a Cost Segregation Study and When Does It Make Sense?
11/24/2021As featured in the Small Business Tax Savings Podcast Recently, Mike Jesowshek, CPA, Founder of JETRO & Associates, interviewed our Cost Segregation Principal, Lester Cook. Topics discussed include cost segregation, how a cost segregation study is performed, the benefits of a cost segregation study, and more. A Cost Segregation Study dissects the construction cost or … Read More

KBKG Tax Insight: Bonus Depreciation for Gas Stations with Convenience Stores
09/08/2021Acquiring or constructing a gas station with a convenience store (“C-store”) can be a lucrative addition to a real estate portfolio. Current rules allow investors to immediately write off all the improvements if certain requirements are met, and the property is placed in service after September 27, 2017. This went into effect after the Tax … Read More
Testimonial
“I used the Residential Cost Segregator® software right after it came out in September of 2016 for a client that had multiple single family rental properties. The cost seg report savings on the properties were tremendous. The client was very happy and I was able to charge a lot more for the tax return.”
-- Jeff Robertson CPA, Klein, Bogakos and Robertson, CPAs Inc