Question 1

What is cost segregation?

Accepted Answer

Cost segregation is a strategic tax planning tool that allows real estate owners to accelerate depreciation deductions on their properties. Instead of depreciating the entire building over 27.5 or 39 years, cost segregation identifies property components that can be depreciated over 5, 7, or 15 years, resulting in significant tax savings in the early years of ownership.

Question 2

What types of properties benefit most from cost segregation?

Accepted Answer

Properties that benefit most include: commercial buildings, multi-family residential (apartments), hotels and resorts, retail centers, medical facilities, restaurants, manufacturing facilities, and any property over $500,000 in value. Generally, properties with significant personal property components (fixtures, equipment, specialized systems) see the best results.

Question 3

How accurate are TaxScout's estimates?

Accepted Answer

Our estimates are based on thousands of actual cost segregation studies and use IRS-approved methodologies. While every property is unique, our estimates are typically within 10-15% of a full engineering study. We use property-specific factors, local construction costs, and industry benchmarks to provide reliable estimates.

Question 4

Do I need a full cost segregation study?

Accepted Answer

Our analysis helps you determine if a full study makes sense. If the estimated benefits exceed the cost of a study (typically $5,000-15,000), we recommend proceeding with a certified study for IRS compliance. TaxScout's analysis gives you the information needed to make an informed decision and provides documentation to share with your CPA.

Question 5

Can I perform cost segregation on properties I already own?

Accepted Answer

Yes! You can perform retroactive cost segregation studies on properties you've owned for years using a "look-back" study. We'll calculate the catch-up depreciation you can claim on your next tax return. This is especially beneficial if you missed accelerated depreciation in previous years.

Question 6

What is bonus depreciation?

Accepted Answer

Bonus depreciation allows you to deduct 100% of the cost of qualifying property in the first year (now permanent under OBBBA). This applies to components identified through cost segregation with depreciable lives of 20 years or less. It's one of the most powerful tax benefits available to real estate investors.

Question 7

What are Opportunity Zones?

Accepted Answer

Opportunity Zones are economically-distressed communities where new investments may be eligible for preferential tax treatment. Benefits include deferral of capital gains, potential reduction of deferred gains, and elimination of capital gains tax on Opportunity Zone investments held for 10+ years. TaxScout maps all 8,764 designated zones.

Question 8

What is Section 179D and who qualifies?

Accepted Answer

Section 179D provides deductions up to $5.00 per square foot for energy-efficient commercial buildings. Qualifying improvements include HVAC, lighting, and building envelope. Owners, designers, and contractors may claim this deduction for buildings placed in service or improved for energy efficiency.

Question 9

What is Section 45L and how does it work?

Accepted Answer

Section 45L provides tax credits of $2,500-$5,000 per unit for energy-efficient new construction and substantial renovations of residential rental properties. Qualifying homes must meet specific energy efficiency standards. This credit is particularly valuable for multi-family developers.

Question 10

Can I combine multiple tax strategies?

Accepted Answer

Yes! Many of our strategies can be stacked. For example, you can use cost segregation with bonus depreciation, invest in an Opportunity Zone, and claim energy efficiency credits like 179D or 45L on the same property. TaxScout analyzes all applicable strategies simultaneously to maximize your total tax savings.

Question 11

How does the free trial work?

Accepted Answer

Your free trial includes 3 property analyses with access to basic cost segregation estimates and standard tax calculations. No credit card required to start. Trial data is retained for 7 days. After the trial, you can upgrade to unlock unlimited analyses, advanced features, and permanent data storage.

Question 12

What payment methods do you accept?

Accepted Answer

We accept all major credit cards (Visa, Mastercard, American Express, Discover) and ACH bank transfers for annual subscriptions. Enterprise customers can arrange invoicing with net-30 terms.

Question 13

Can I cancel at any time?

Accepted Answer

Yes, you can cancel your subscription at any time with no penalties or fees. Your access continues until the end of your current billing period. We also offer a 30-day money-back guarantee if you're not satisfied with our service.

Question 14

Do you offer refunds?

Accepted Answer

Yes. We offer a 30-day money-back guarantee on all paid plans. If you're not satisfied with TaxScout for any reason, contact us within 30 days of purchase for a full refund.

Question 15

Can I upgrade or downgrade my plan?

Accepted Answer

Absolutely! You can change your plan at any time. Upgrades take effect immediately with prorated billing. Downgrades take effect at the end of your current billing cycle to ensure you don't lose access to features you've paid for.

Question 16

Is my data secure?

Accepted Answer

Yes. We use bank-level encryption (AES-256) for data at rest and TLS 1.3 for data in transit. Our infrastructure is SOC 2 Type II compliant, and we never sell or share your data. All property and financial information is stored securely with redundant backups.

Question 17

How does the AI document extraction work?

Accepted Answer

Upload your property documents (purchase agreements, closing statements, appraisals, etc.), and our AI extracts key information like purchase price, property type, square footage, and closing date. You can review and edit all extracted data before running calculations. The AI learns from millions of real estate documents.

Question 18

Can I export my reports?

Accepted Answer

Yes! Professional and Enterprise plans include PDF export for all reports. Reports include executive summaries, detailed calculations, depreciation schedules, and implementation recommendations. You can share these directly with your CPA or tax advisor.

Question 19

Do you have an API?

Accepted Answer

Yes. Professional and Enterprise plans include API access. Integrate TaxScout's tax optimization calculations into your existing property management or deal analysis software. Full API documentation is available in your account dashboard.

Question 20

What browsers are supported?

Accepted Answer

TaxScout works on all modern browsers: Chrome, Firefox, Safari, and Edge (latest 2 versions). We also have full mobile support for iOS and Android devices. For the best experience, we recommend using Chrome or Safari with JavaScript enabled.

Cost Segregation

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