So herein lies the problem. Because of the extensive requirements, many cost segregation reports will cost thousands of dollars and it is not unusual to see reports exceed $10,000.
The result is that it just did not make sense for owners of small rental properties to get a report done. So cost segregation studies were typically reserved for large commercial projects. But not anymore.
Thanks to tax reform, the useful lives of certain real estate components have been shortened. In fact, some components even allow for immediate expensing.