Basis and traditional cost segregation firms can both produce useful studies. The main difference is the type of engagement. Basis offers a defined remote service for eligible residential rentals. A traditional firm may provide a broader custom engagement that includes site work, specialized investigation, or services for commercial and unusual properties.
The right model depends on the property, the records available, and the work your tax professional expects. Compare the actual scope and deliverables rather than relying on labels such as "online," "engineering-based," or "CPA-ready."
Remote residential service and custom engagement at a glance
An eligible residential rental with up to four units
Consider the Basis standard remote study. Confirm the property's use and scope. The published price is $1,795, with optional work priced separately.
Commercial, mixed-use, or a larger apartment property
Seek a provider that accepts the property. These properties are outside the Basis base service. Ask for a written scope that covers the actual building and its use.
Important facts cannot be established remotely
Ask about inspection or additional investigation. Records and photographs may not supply the measurements or evidence needed for an unusual property.
You also need tax filing or representation
Arrange those services separately or request a broader engagement. They are not included in the Basis base study.
This is a guide to service fit, not a claim that every traditional firm offers the same work. Confirm inspections, deliverables, fees, and support with the firm quoting your property. Basis portfolios of five or more properties use custom pricing.
Pricing, scope, timing, and support terms can change. Review the current Basis pricing and Customer Services Agreement before purchasing.
When a remote residential study may fit
A remote service may fit an owner with an eligible residential rental who wants a published standard price and can document the property without an inspection. The owner should be able to provide accurate acquisition and placed-in-service information, land-value support, renovation records when applicable, and enough property detail for the provider to complete its analysis.
What the owner does
Complete the guided online intake, supply requested records, and answer follow-up questions. Progress saves, so you can return when the information is available. If an important fact is missing, flag it rather than guess. Basis can explain what information is needed or whether the property falls outside the standard service.
What happens before delivery
The delivery process begins after payment and after the completed intake, required information, and any purchased add-on materials are accepted as ready. Professional review happens before approval and delivery. When comparing quotes, ask when each firm's delivery clock starts and what can pause it.
What you receive
The Basis package includes an executive summary, asset classifications, depreciation schedules, methodology, supporting materials, and notes for CPA review. The base service includes three years of limited, report-specific support. Your tax professional decides how the report applies to the return.
Basis does not include a physical site visit in its base residential study. That is a material limitation, not a minor delivery detail. Review the interactive sample report and confirm that the remote process and report package meet your tax professional's needs before ordering.
When a custom or on-site engagement may fit better
A traditional firm may be the better choice when the property needs work outside a defined residential scope. Examples include a large commercial building, a specialized facility, substantial mixed use, unusual building systems, missing construction records, or facts that cannot be established remotely.
An on-site visit can provide useful evidence when a provider needs to inspect specialized equipment, verify unusual conditions, take measurements, or document property features that records and photographs do not establish. A visit does not prove that a study is better by itself. Ask what the provider will examine and how the findings will affect the report.
Basis's base residential service excludes commercial properties, apartment buildings with more than four units, mixed-use properties, raw land, properties outside the United States, and personal residences without rental use. Detached structures, accessory dwelling units, guest houses, or complex personal and rental use may require added review or may fall outside the base scope.
The base service also excludes tax-return preparation, Form 3115 preparation, taxpayer-specific tax advice, and IRS representation. Another engagement may be more appropriate when those services or extensive reconstruction of missing records are required.
Compare the report and the work behind it
A cost segregation study identifies parts of a qualifying property that may use shorter depreciation recovery periods. IRS Publication 946 explains the broader rules for depreciable property, basis, recovery periods, methods, and placed-in-service dates.
The IRS does not prescribe one required report format. Its Cost Segregation Audit Technique Guide describes elements commonly found in a well-documented study. These include asset classifications, the reasons for those classifications, support for asset costs, and reconciliation to the property's total depreciable cost.
Before selecting a provider, compare a sample report and written scope. Confirm the following points:
The property types and locations covered by the service.
The records and owner participation required.
The method used to estimate or allocate component costs.
The people who prepare and review the study.
The schedules, methodology, and supporting material delivered with the report.
The full price, delivery starting point, correction process, and support terms.
The phrase "CPA-ready" means only that a report is organized for a CPA to evaluate. It does not mean that a CPA has adopted the report or approved a filing position. The owner and tax professional still decide how the study applies to the return.
Choose the engagement that fits the property
Basis may fit a residential owner who wants a remote process, a published $1,795 study price, professional review before delivery, and three years of limited support about the delivered report. A custom firm may fit better when the property requires an inspection, broader engineering work, commercial expertise, or services outside the study.
Use the residential provider comparison to review published service models, prices, timing, and support. Then compare the written terms that apply to your property.
For the online experience, read how to choose a web-based cost segregation tool. For fees and possible add-ons, use the residential study-cost guide.
If the property appears to fit a standard residential study, a free Basis estimate can help you compare the preliminary opportunity with the study price before deciding. The estimate is informational and is not a completed study, tax opinion, depreciation schedule, or filing position.
© 2026 Basis Cost Seg. For informational purposes only and not tax or legal advice. Actual results depend on the property and the owner's tax circumstances. Consult a qualified tax professional before using a study on a return.
Further reading
- IRS Cost Segregation Audit Technique Guide IRS examination guidance describing the principal elements of a quality cost segregation study.
- IRS Publication 946, How To Depreciate Property Federal guidance on depreciable property, basis, recovery periods, and depreciation methods.
- Basis Customer Services Agreement Current service scope, report package, exclusions, and support terms.
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