When it comes to cost segregation, not all studies are created equal. On the surface, many providers promise IRS-compliant reports and big depreciation savings. But once you dig deeper, the differences in methodology, transparency, and audit defensibility become clear. The reason we are able to provide studies that are comprehensive and inexpensive quickly is because we use cutting edge AI but the competition is just cutting corners and putting you at risk of audit.
If you're comparing services like CostSegEZ to ours at Rental Write Off, this guide will help you understand what you're really getting—and what you're not.
Methodology: Ours Is Built for IRS Compliance, Theirs Is Built for Simplicity
At Rental Write Off, we use a two-pronged valuation approach based on the latest IRS guidance:
- Residual Estimation Method
- Replacement Cost New Less Depreciation (RCNLD)
These methods are directly aligned with the IRS Cost Segregation Audit Techniques Guide (2025 update) and consider:
- Asset condition and age
- Market depreciation
- Functional obsolescence (e.g., outdated appliances, single-zone HVAC)
- Regional cost modifiers
What the fast/cheap competition provides: A basic summary using broad percentages per asset class—no visibility into how those numbers were derived, what depreciation logic was used, or if the valuation stands up to scrutiny.
Real Numbers vs. Black Box Estimations
Our reports include a CSV file with every asset itemized, classified, and valued down to the dollar. Each asset includes:
- Quantity and unit cost
- IRS asset class (5-, 7-, 15-, or 27.5-year)
- Physical condition multiplier
- Final allocated cost
You also receive:
- A full photo folder documenting each asset
- A methodology document citing every IRS regulation and cost source used
With the competition that says its "fast"? You get a 2-page PDF and a pie chart. That's it. No photos. No itemization. No source documentation.
Audit Readiness: You're Covered
Cost segregation isn't just about claiming deductions—it's about keeping them. If the IRS ever comes knocking, your report needs to be bulletproof.
That's why we provide:
- Photographic evidence of every component
- Comparable market data from Craftsman Estimator, PPI, and real-time pricing tools
- Clear classification logic tied to IRS tests (e.g., Permanence Test, Functional Relationship Test)
- Signed, timestamped professional report
CostSegEZ does not include supporting documentation, photos, or detailed methodology—leaving you exposed in the event of an audit.
Local Adjustments, Real-World Pricing
We don't rely on generic templates. We adjust valuations based on:
- Your property's ZIP code
- Construction and labor costs in your region
- Time-adjusted pricing based on the year your property was placed in service
This means your depreciation is accurate, defendable, and maximized. CostSegEZ's flat-rate approach ignores these factors.
Bottom Line: We Help You Maximize Deductions Without the Risk
| Feature | Rental Write Off | CostSegEZ |
|---|---|---|
| IRS-Cited Methodology | ✅ Yes | ❌ No |
| CSV Asset Breakdown | ✅ Yes | ❌ No |
| Photo Documentation | ✅ Yes | ❌ No |
| Local & Time Adjustments | ✅ Yes | ❌ No |
| Audit Defensibility | ✅ Comprehensive | ❓ Minimal |
| One Flat PDF | ❌ No | ✅ Yes |
What This Means for You
If you're investing in a cost segregation study, don't settle for a shortcut that could cost you thousands later. At Rental Write Off, we combine deep technical rigor with transparent deliverables—designed not just to impress your CPA, but to protect you in front of the IRS.
Ready to see the difference?
Reach out to us and we'll show you what a real, audit-grade study looks like—before you commit.