RE Cost Seg vs AE Tax Advisors
RE Cost Seg built a fast, investor-friendly cost segregation product that a lot of short-term rental owners like. AE Tax Advisors performs the study and files the return. Here is the honest comparison.
The short version
RE Cost Seg is a study provider built for real estate investors. AE Tax Advisors is a tax practice that happens to produce studies. Which one you want depends on whether your preparer can carry the ball after the report arrives.
RE Cost Seg is a tech-enabled cost segregation firm serving real estate investors nationwide, with a reputation for fast turnaround, transparent process, and a product that fits residential and short-term rental investors well. It is popular in investor communities for good reason: the experience is clean and the pricing is competitive against traditional engineering firms.
AE Tax Advisors performs studies at $1 per square foot with a $2,000 minimum, and then does the tax work: passive activity analysis under Section 469, the Form 3115 that a look-back study requires, prior-year amendments, and the current-year return.
If you have a strong real estate CPA already, RE Cost Seg plus that CPA is a perfectly good combination. If you do not, or if you want one accountable party, that is the case for consolidating.
What RE Cost Seg does well
The core product is a cost segregation study delivered faster and more affordably than the traditional engineering model, aimed squarely at individual real estate investors rather than institutional owners. The process is designed to be low-friction: submit property details and documents, get a projection, then receive the study.
Short-term rental investors in particular have adopted it, because the STR strategy depends on a study and the traditional five-figure engineering quote made the math marginal on a $500,000 property. Bringing that cost down materially changed which properties are worth studying.
The firm's materials and support are investor-oriented rather than CPA-oriented, which is a real difference in usability if you are the property owner rather than an accountant.
Where the gap sits
As with every study-only provider, the deliverable stops at the report. Three things happen after it that determine whether you actually save money.
Usability. Under Section 469 your rental loss is passive unless you qualify as a real estate professional under Section 469(c)(7), the property falls under the short-term rental exception with an average stay of seven days or less plus material participation, or you have offsetting passive income. If none of those hold, the deduction suspends and carries forward.
Form 3115. If you have held the property for more than one tax year, the missed depreciation is claimed through a change in accounting method with a Section 481(a) adjustment. This is a technical filing that must be attached correctly and copied to the IRS. Study providers do not prepare it.
Documentation. Material participation for a short-term rental has to be evidenced with contemporaneous records of hours, tasks, and dates. Reconstructing that in April, after the IRS asks, is a materially weaker position than logging it during the year.
Side-by-Side Comparison
| RE Cost Seg | AE Tax Advisors | |
|---|---|---|
| Cost segregation study | ✔ Yes | ✔ Yes |
| Pricing model | Quoted per property | $1/sq ft, $2,000 min |
| Free projection before purchase | ✔ Yes | ✔ Yes |
| Turnaround | Fast | Days |
| Built for individual investors | ✔ Yes | ✔ Yes |
| Section 469 usability analysis | ✘ No | ✔ Yes |
| Form 3115 prepared and filed | ✘ No | ✔ Yes |
| Tax return preparation | ✘ No | ✔ Yes |
| Prior-year amendment recovery | ✘ No | ✔ Yes |
| Material participation documentation support | ✘ No | ✔ Yes |
| Real estate professional status planning | ✘ No | ✔ Yes |
| Entity structuring | ✘ No | ✔ Yes |
| Year-round advisory | ✘ No | ✔ Yes |
| Audit support for the study | ✔ Yes | ✔ Yes |
Pros and Cons of Each
Every firm has a profile it serves well and a profile it does not. Here is an honest read on both.
RE Cost Seg
Tech-enabled cost seg for investors
Strengths
- Fast turnaround and a clean, investor-friendly process
- Competitive pricing against traditional engineering firms
- Well-suited to residential and short-term rental properties
- Strong reputation in real estate investor communities
- Projections available before you commit to the full study
Limitations
- Study only—no tax return preparation or advisory
- Does not prepare the Form 3115 required for look-back studies
- No Section 469 analysis of whether your loss is usable
- No help building material participation documentation during the year
- Requires a competent preparer on your side to realize the benefit
AE Tax Advisors / Stratum
Study plus full tax implementation
Strengths
- $1 per square foot with a $2,000 minimum, published up front
- Passive activity usability confirmed before the study is run
- Form 3115 and Section 481(a) catch-up prepared in house
- Material participation logging set up in January, not reconstructed in April
- Prior three years reviewed and amended where depreciation was missed
Limitations
- Not a standalone product purchase—we prefer an advisory relationship
- Boutique engineering capacity versus a dedicated study factory
- Discovery call required rather than an instant online order
- More expensive than a study-only provider if you only want the report
- Full advisory does not pencil out below roughly $250,000 of income
Which One Should You Choose?
Choose RE Cost Seg if
You already work with a real estate tax professional who handles Form 3115 and passive activity analysis confidently, and you want a fast, well-priced study to hand them. That is a good combination and there is nothing wrong with it.
Choose AE Tax Advisors if
You want one firm accountable for the whole outcome, you own several properties, or you are relying on short-term rental material participation and need the documentation built correctly during the year rather than after.
Either way, do this first
Confirm the loss will be non-passive before you buy a study from anyone. It is a fifteen-minute conversation and it is the difference between a large current-year deduction and a carryforward you cannot use.
Why Clients Choose AE Tax Advisors
- One accountable party. If the deduction does not land on the return correctly, there is no finger-pointing between a study vendor and a preparer. We produced the study and we filed the return.
- $1 per square foot, Form 3115 included. A 2,800 square foot short-term rental is $2,800, and the accounting method change for a property you have owned since 2023 comes with it.
- Participation logs built during the year. For the short-term rental strategy, the study is the easy part. Surviving scrutiny on material participation is the hard part, and it depends on records created contemporaneously.
- Portfolio sequencing. With several properties, which studies to run in which year, and which prior years to amend, is a planning decision worth real money. A per-property vendor cannot make it.
- The whole return. Entity structure, reasonable compensation, retirement contributions, and disposition timing all interact with a large depreciation deduction. We are looking at all of it.
Frequently Asked Questions
Is RE Cost Seg legit?
Yes. RE Cost Seg is an established tech-enabled cost segregation provider serving real estate investors nationwide, with a good reputation for turnaround and process. It produces the study; tax implementation is handled by your own preparer.
How much does RE Cost Seg cost?
RE Cost Seg quotes per property based on type, size, and basis, and provides a projection before you commit. AE Tax Advisors publishes its rate at $1 per square foot with a $2,000 minimum, with Form 3115 and tax implementation included.
RE Cost Seg vs AE Tax Advisors for a short-term rental?
Both will produce a competent study. The difference is what surrounds it: the seven-day average stay test, material participation hour logs, the Form 3115 for a property you already owned, and the return itself. If those are already covered by your CPA, either works. If not, consolidating matters more than the study price.
Does RE Cost Seg file Form 3115?
No. Study providers deliver the engineering analysis; the Form 3115 change in accounting method that lets you claim catch-up depreciation on a property held more than one tax year is prepared by your tax preparer. AE Tax Advisors prepares and files it.
How fast can I get a cost segregation study?
Tech-enabled providers have compressed industry turnaround from weeks to days for straightforward properties. Our studies typically turn around in days as well, because the engineering analysis and the tax review sit in the same team.
Can I do a cost segregation study on a property I bought two years ago?
Yes. This is one of the most valuable moves available to investors. You file Form 3115 and take the entire cumulative missed depreciation as a Section 481(a) adjustment in the current year rather than amending prior returns. On a property held two or three years, that single adjustment is often six figures.
What is the best cost segregation company for real estate investors?
It depends on scale and what you need alongside the study. See our ranked comparison of cost segregation companies for 2026 for a fuller breakdown of the main providers and who each one fits.
Keep Comparing
Disclosure: this page is published by AE Tax Advisors, so we are not a neutral party. We have tried to describe the other firm accurately and fairly using their own public materials, and we say plainly where they are the better fit. Firm details, service menus, and pricing change—verify anything that matters to your decision directly with the firm before you engage. Nothing here is tax advice for your specific situation.
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