Basis vs. KBKG: Comparing Two Different Cost Segregation Models

What KBKG is, based on its public site

KBKG is a large specialty tax firm with decades of operating history, serving property owners, businesses, and CPA firms across a wide range of industries, from healthcare and manufacturing to hospitality and technology. Cost segregation is one of several service lines the firm offers, alongside R&D tax credits, 179D energy-efficient building deductions, 45L residential energy credits, fixed asset depreciation review, and other specialty tax work. The firm also publishes education resources and a standalone residential cost segregation savings calculator as a self-serve entry point.

That breadth is a real strength for an owner or business that needs more than cost segregation, someone claiming R&D credits on a manufacturing operation while also running a cost segregation study on the facility itself, for instance. One firm handling multiple incentive types can simplify coordination.

Where Basis is built differently

Basis does one thing: cost segregation and the related mechanic of partial asset disposition, the write-off of a replaced component's remaining basis in the year of replacement. There is no R&D credit practice, no 179D line, no adjacent service to cross-sell. That narrower focus is deliberate, built specifically around two owner types: short-term rental owners and individual commercial property owners, rather than the full range of industries a broad specialty firm serves.

The clearest difference shows up in process. A short-term rental study at Basis runs entirely from the listing photos already on Airbnb or VRBO, no site visit required. A free Preliminary Benefit Estimate models the likely first-year number before any commitment, through the 60-second qualifier at /qualify. And every study carries a 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.

KBKG's residential calculator versus a free estimate

KBKG publishes a standalone residential cost segregation calculator, a self-serve tool that lets an owner enter basic property details and get a rough projected number without contacting the firm. That is a genuinely useful first step for an owner who wants a ballpark figure before deciding whether to engage anyone. Basis's free Preliminary Benefit Estimate works differently: instead of a generic calculator formula, the 60-second qualifier at /qualify feeds directly into the same process that produces the delivered study, so the estimate and the eventual report are built on a consistent methodology rather than a separate self-serve tool and a separate engagement process.

Neither approach is wrong. A calculator is faster to build and faster for an owner to use casually. An estimate tied to the actual delivery process gives a number closer to what the final study will show, since it comes from the same underlying model rather than a simplified public-facing formula.

Turnaround and audit defense, side by side

Both engineering-based firms operate on similar general turnaround timelines industry-wide, typically 4 to 6 weeks in peak tax season and faster in the off-season, since the underlying classification work takes comparable effort regardless of which firm performs it. Where firms diverge is audit defense specifics. Basis provides full audit defense of its delivered report, meaning the team that built the study answers an examiner's questions about the study itself, distinct from taxpayer representation, which stays with the client's CPA. Confirming the exact scope of audit defense, and whether it is included in the fee or a separate add-on, is worth asking any firm directly, KBKG included, since defense terms are not always identical across the industry.

A worked example on a comparable property

On a delivered free-standing restaurant study, the building basis was $2,804,440. The engineered study identified $599,678 in first-year deductions for a $9,000 fee, a 66.6 to 1 ratio, well past the guarantee floor. That property is the kind of individual commercial building the broker model is specifically built to serve efficiently: not part of a larger enterprise portfolio, not needing R&D credits alongside the depreciation work, just a single building with a study that pays for itself many times over.

When KBKG's breadth is the better fit

An owner whose situation genuinely spans multiple incentive types, cost segregation plus R&D credits on an operating business, plus 179D on an energy-efficient renovation, benefits from a single firm that already covers all three rather than coordinating separate specialists. A large national firm with decades of institutional knowledge also has depth across nearly every property type, useful for unusual or highly specialized buildings that fall outside the residential and commercial property types a narrower firm sees most often.

When the Basis model fits better

An owner whose need is specifically cost segregation, particularly a short-term rental owner who wants a photos-only process and a number before committing, or an individual commercial owner who wants a fee-agnostic guarantee rather than a rate-card fee, is the situation the broker model is built around. Choosing between models comes down to whether breadth across tax incentive types matters more than a process built specifically for STR and single-property commercial owners.

A practical way to decide: list every tax incentive actually relevant to your situation this year. If cost segregation is the only one on the list, a firm built specifically around it, with a guarantee attached, has less to distract from that one engagement. If two or three incentive types are genuinely in play, a firm covering all of them under one roof removes coordination work an owner would otherwise carry themselves.

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

Frequently asked questions

Does KBKG offer a free estimate before committing to a study?

Check KBKG's current site for its specific process, since offerings can change. Basis provides a free Preliminary Benefit Estimate through a 60-second qualifier at /qualify before any commitment, modeling the likely first-year number for a specific property.

Is KBKG a good fit for a short-term rental?

KBKG is a broad national specialty firm serving many property and business types, including residential. Whether its process matches a photos-only, no-site-visit workflow specifically built for short-term rentals is worth confirming directly with the firm.

Why does Basis only do cost segregation and not R&D credits or other incentives?

Basis is built narrowly around cost segregation and partial asset disposition for short-term rental and commercial property owners, prioritizing depth in that one mechanic and a guarantee-backed process over a broader menu of tax incentive services.

Does a bigger, more established firm mean a more defensible study?

Both KBKG and Basis build studies aligned to the IRS Audit Techniques Guide (Pub 5653). Firm size and history are not the same as documentation quality; ask any provider directly what its report includes and who defends it under exam.

Can I get a number from Basis without switching away from an existing KBKG relationship?

Yes. The free estimate at /qualify carries no commitment and can be used simply to compare a projected number against what another firm proposes.