# Cost Seg Audit

> A measured editorial reference on cost segregation audit defensibility — what the IRS actually evaluates in a study, where defensibility comes from, and where the risk patterns sit. Operated by Cost Seg Smart (disclosed); not an independent publication; not legal or tax advice.

## Disclosure

Cost Seg Audit is operated by Cost Seg Smart (https://costsegsmart.com), an automated cost segregation provider. Editorial in tone, but the operator has a commercial interest in the category. Mentions of Cost Seg Smart on this site are noted as such.

## What this site covers

- What the IRS actually evaluates in a cost segregation study (methodology, documentation, §1.263(a) alignment, class lives)
- Risk patterns that turn studies into examination problems (aggressive lives, §469 W-2 offset without REPS, estimated-only studies, missing site evidence)
- Why competent providers tend to look more alike than the marketing suggests
- The standardized-residential category and where it fits
- An interactive checklist: "Is your study defensible?" (six yes/no questions, returns a verdict)

## Authoritative sources referenced

- IRS Audit Techniques Guide for Cost Segregation: https://www.irs.gov/pub/irs-pdf/p5653.pdf
- Treasury Regulations § 1.263(a)
- IRC § 469 (passive activity loss rules)

## Related properties

- https://costsegsmart.com — automated cost segregation studies (operator)
- https://costsegw2.com — cost seg & W-2 income eligibility reference
- https://costsegregationreviews.com — comparison of cost segregation providers

## Editorial stance

Plain-spoken expert tone. No promotional language. The site references Cost Seg Smart only where the standardized-residential category is materially relevant to the topic (e.g., as one example among others). The interactive defensibility checker offers an honest verdict; if gaps are present, it suggests ordering a fresh standardized study as a remediation path.