Basis vs. Deloitte on Cost Segregation: Two Different Service Models

What Deloitte is, based on its public site

Deloitte is one of the Big Four global professional services networks, offering audit, tax, consulting, and advisory services to large organizations across industries including financial services, government, life sciences, and industrial manufacturing. Its US site lists cost segregation as one of six compliance valuation analyses on its Valuation & Modeling page, alongside purchase price allocation and goodwill and asset impairment. We found no dedicated cost segregation page on its US site.

The Valuation & Modeling page gives no cost segregation process, fee or timeline, so how Deloitte takes on a single owner is a question for Deloitte.

Why scale changes what a service model looks like

A firm built to serve REITs, private equity real estate funds, and multinational corporations may structure its engagements around that scale: relationship-based selling, integration with existing audit or advisory work, and pricing built for large, complex portfolios. None of that is a criticism. It is simply a different problem than a single owner deciding whether to run a study on one $2M office building or one short-term rental.

An individual owner approaching a Big Four firm cold, without an existing enterprise relationship, will not find a cost segregation fee, timeline, minimum engagement size or self-serve first look on the Deloitte page that lists cost segregation.

How Basis is built for the other end of that spectrum

Basis is built specifically for the individual owner: a single commercial building or a short-term rental, not a portfolio. For an STR, the process runs entirely from the listing photos already on Airbnb or VRBO, no site visit. A free Preliminary Benefit Estimate, through the 60-second qualifier at /qualify, models the likely first-year number before any commitment, which matters more for an individual owner deciding whether a study is worth the fee than for an enterprise client already committed to the relationship.

Every Basis study also carries a fee-agnostic guarantee: at least 20 times the fee in first-year deductions on commercial property, or 30 times on a short-term rental, or the study is free. That floor matters more when a single fee decision is being weighed against a single building's numbers, rather than folded into a larger enterprise budget.

What an existing Deloitte relationship is actually good for

If a corporation already retains Deloitte for broader tax or advisory work, folding cost segregation into that existing relationship has real advantages: one point of contact, consistent methodology across a portfolio, and coordination with how the depreciation reclassification interacts with the company's broader tax position. That coordination matters more as portfolio size grows, since a REIT running the same study across dozens of properties benefits from one consistent process rather than reconciling different firms' methodologies across the portfolio.

None of that scales down cleanly to a single property, though. The coordination benefit that justifies an enterprise-scale relationship largely disappears when there is only one building involved, which is exactly the situation an individual owner is usually in.

A worked example: mid-rise office property

On the mid-rise office benchmark run, the building basis was $2,971,345. The benchmark run identified $479,220 in first-year deductions for a $12,000 fee, a 39.9 to 1 ratio. That is a meaningfully sized commercial property, large enough that an owner might assume a Big Four relationship is the natural fit, but still a single building owned individually or through a small entity, not part of an institutional portfolio. That is exactly the scale Basis is built to serve efficiently: real depth on one property, without the overhead of an enterprise engagement.

Documentation standards do not change with firm size

A common assumption is that a Big Four name automatically means stronger documentation. The underlying standard does not actually move: every legitimate cost segregation study, at any firm, should follow the IRS's own Audit Techniques Guide (Pub 5653), with asset-by-asset classification and supporting cost data. A large firm's institutional process does not make the documentation more defensible than a specialty firm's equivalent report; it makes the client relationship different. An owner evaluating any firm, Deloitte included, should ask to see what the actual deliverable contains rather than assuming firm size settles the question.

When each model is the right call

An existing Deloitte client with a large institutional real estate portfolio and an established tax advisory relationship gains real efficiency from keeping cost segregation inside that same relationship. An individual owner of one commercial building, or a short-term rental, without that existing relationship, is generally better served by a firm built around that transaction size specifically. See how to choose between models for the fuller decision framework, and the full landscape comparison for how every model maps to owner type.

A simple test: does an existing advisory relationship already exist, and does the property in question sit inside a portfolio that relationship already covers? If yes to both, staying inside that relationship is usually the efficient choice. If the answer to either is no, a firm built around single-property engagements is worth a direct comparison before defaulting to firm size or brand recognition.

Details about Deloitte come from its public materials as of October 2026; tell us if something is out of date.

Frequently asked questions

Does Deloitte offer cost segregation to individual property owners?

Deloitte's Valuation & Modeling page lists cost segregation as one of its compliance valuation analyses, and publishes no process, fee or minimum engagement size for it. Whether it takes on a single individual owner as a standalone engagement is worth confirming directly with the firm.

Is a Big Four cost segregation study more defensible than a specialty firm's?

Both types of firms build studies aligned to the IRS Audit Techniques Guide (Pub 5653) when done properly. Firm size is not a substitute for documentation quality; ask any provider what the report contains and who defends it under exam.

Why doesn't Deloitte publish specific cost segregation pricing?

Deloitte's Valuation & Modeling page publishes no fee for cost segregation, and it does not say why. Basis prices each study to the property, and the free estimate comes first.

What's the fastest way to get a number without a Big Four-scale engagement?

A free Preliminary Benefit Estimate at /qualify takes about 60 seconds and models a likely first-year number for a specific building before any commitment, a first step that Deloitte's Valuation & Modeling page does not describe.

Can a short-term rental owner use a Big Four firm for cost segregation?

Deloitte's Valuation & Modeling page lists no minimum engagement size, so that is a question for the firm. A firm built specifically for short-term rentals, with a photos-only process, is generally a more direct fit for that property type.

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