Claim check · Evidence in context
Does Cost Segregation Save 30% to 40%? Fact-Checked
A percentage moved into faster depreciation is not a percentage taken off a tax bill. The sales wording mixes those two ideas. Baker Tilly’s published explanation supports a basis-reclassification range, not a universal savings promise.
Last reviewed: November 11, 2026By Steve W. · Investigative Research Analyst
Educational only. This is not tax, legal, or financial advice.
What Baker Tilly’s range actually describes
CPA firm Baker Tilly’s FAQ, updated March 5, 2025, says reclassification of assets to short-life property commonly ranges between 10% and 40% of depreciable cost basis, depending on property type. That is the firm’s statement about a share of basis. It is not a claim that the same percentage comes off an owner’s tax bill.
Depreciable basis is the cost amount used in depreciation calculations. Reclassifying eligible components can change when deductions occur. The tax effect requires another calculation using the owner’s actual circumstances. Dropping the word “basis” from a percentage and replacing it with “saves” changes the meaning of the source.
The weekly-card claim is quoted as sales language, not adopted as our result. Our verdict is Misleading because a range about classification is being presented as if it measures savings. Results depend on the building, the supported study, and the tax facts your CPA reviews.
Basis moved and tax reduced are different quantities
Keep the two questions on different sides of the page. One asks how much depreciable basis is classified into shorter-life property. The other asks how deductions affect this year’s tax. A percentage can answer the first question without answering the second.
The method below uses words instead of an invented property or a made-up tax benefit. It shows the handoff between the study and the tax calculation. No assumed purchase price, tax rate, or savings amount is needed to explain why a reclassification percentage cannot be read directly as cash savings.
Study classification
Share of depreciable basis moved
Supported short-life component basis ÷ total depreciable basis. This describes classification, not dollars off a tax bill.
Tax calculation
Dollars off this year’s tax
Compare tax with and without the allowed deduction changes using the owner’s actual facts. A CPA must assess the inputs and the timing.
The study must support the classification
A cost-segregation report should explain the work behind the allocations rather than simply choose a percentage from an industry range. Ask what property records were used, who classified the components, and how the report supports the resulting depreciation schedules. A broad source range is not documentation for your building.
The IRS Cost Segregation Audit Techniques Guide, Publication 5653, is the named reference for study-quality discussion. It describes quality-study elements, including documentation and expertise. We do not treat the guide as a list of endorsed firms or invent a chapter quotation. It is a way to frame the questions about support.
A preliminary estimate and a filing-ready study are different deliverables. Ask which one is being offered before discussing projected benefits. Your CPA should understand the preparer’s assumptions and the work still required to use the report. A polished sales percentage does not eliminate that review.
Use the calculator as a question tool, not a promise
The existing cost-segregation calculator is linked from this article without changing its math or creating another tool. It can help frame an educational estimate. It cannot inspect a building, establish a supported allocation, or decide whether your own tax position allows a projected benefit.
Keep the inputs visible when discussing a result. If an assumption changes, the estimate can change too. Do not relabel an illustrative output as a measured property result or a provider’s quote. Take the assumptions to the CPA who knows your records and ask which ones need correction.
When comparing study firms, request a written scope covering property review, report preparation, and the CPA handoff. Ask who signs the study and who handles any needed Form 3115 work. Those practical details matter more than whether a brochure repeats the upper end of another firm’s published range.
Our best-companies comparison distinguishes engineered work, DIY software, and estimates. The live hub explains the broader claim checks. Neither page crowns a winner based on a promised savings percentage. The next useful step is a property-specific scope and tax review, not a universal figure.
Keep the context
- Cost-segregation guide
- Existing cost-segregation calculator
- Best Cost Segregation Companies
- Study-cost guide Coming soon
- Short-term rental guide Coming soon
Questions about this claim
Sources and scope
- Baker Tilly FAQ — updated March 5, 2025
- IRS Publication 5653 — Cost Segregation Audit Techniques Guide
Fact Check Media LLC. This check addresses the quoted claim, not every service or future company term. Report an error.
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