How much does a cost segregation study cost?

Highbridge Studies charges a flat fee for each building, quoted after the records have been seen. The amount depends on the size and type of the building, on whether it was built, renovated or bought, and on how much documentation there is to read.

Is the fee a percentage of the building’s cost or of the tax result?

No. The fee is never a percentage of the basis, and it is never tied to the tax result.

When is the fee known?

Before any work begins. The engagement letter sets out the scope of the work and the fee, and a study is prepared only once that letter is signed.

Highbridge StudiesWhat a study costs

What a cost segregation study costs

Highbridge Studies charges a flat fee for each building. It is quoted after the records have been seen and before any work begins, so the full cost of a study is known before an owner decides to go ahead.

A flat fee for each building

The fee is a fixed amount for the building. It is set out in the engagement letter together with the scope of the work, and a study is prepared only once that letter is signed.

It is never a percentage of the building’s basis, and it is never tied to the tax result. A preparer whose fee rises with the figures in a report has a reason to push them. A study is useful only if its figures stand on the records behind them, so the fee at Highbridge Studies does not move with the outcome.

What the fee depends on

The quote reflects the work a particular building asks for.

The size of the building and the kinds of space in it. Apartments over a store take more work than apartments alone.
How the building came to its owner. A building that was built or renovated leaves requisitions, change orders and invoices to be read line by line. A purchased building starts from the closing statement and the appraisal.
How much documentation there is. Records are welcome in any form and nothing needs to be sorted first.
The number of buildings. Owners with several are quoted building by building.

Every building is visited in person, and the visit is part of the fee.

Why there is no price list

No two buildings ask for the same amount of work. A six-story elevator building finished last year with a full set of requisitions is a different job from a prewar walk-up bought as it stands. A figure given before the records are seen would be a guess, and one side or the other would pay for the guess.

Whether a study is worth its fee

That depends on the building’s depreciable basis set against the fee, and on the owner’s own tax position, which is a question for the accountant who prepares the return. If the numbers do not support a study, the preparer will say so on the first call.

How to get a figure

Call (646) 974-4208 or send a message with the address of the building and a line about how it was acquired. A first conversation is usually enough to tell whether a study makes sense. The quote follows once the records have been seen. The services page lists the documents that help, none of which is required.

Questions

How much does a cost segregation study cost?: Highbridge Studies charges a flat fee for each building, quoted after the records have been seen. The amount depends on the size and type of the building, on whether it was built, renovated or bought, and on how much documentation there is to read.
Is the fee a percentage of the building’s cost or of the tax result?: No. The fee is never a percentage of the basis, and it is never tied to the tax result.
When is the fee known?: Before any work begins. The engagement letter sets out the scope of the work and the fee, and a study is prepared only once that letter is signed.