Skip to main content
CostSegLogic

← Back to founder letter

2026-05-09 · Founder

Why CostSegLogic exists

A note from the founder. I went looking for a cost segregation study on one of my own properties and found a racket. So I built the alternative.

ByFounder


title: "Why CostSegLogic exists" date: "2026-05-09" summary: "A note from the founder. I went looking for a cost segregation study on one of my own properties and found a racket. So I built the alternative." tag: "Founder" author: "SJ" draft: false

Audit-ready, CPA-blessed, IRS-aligned cost segregation studies — federal and state, with recapture schedules included. Same methodology the big firms use. Same defensibility. None of the theater, none of the markup, and none of the half-truths.

That's what we built. Here's why.

I didn't set out to start a business

I set out to complete my taxes. I own short-term rentals. I run Airbnbs. And a couple of years ago, I went looking for a cost segregation study on one of my own properties.

What I found was a racket. Quotes between $3,000 and $8,000. Six-week turnarounds. A sales pitch built on fear: you need this for audit defense. Spend less and the IRS will come for you. A "real" study has to be expensive.

I didn't buy it. So I started digging into what these firms actually do.

What I found

The methodology is real and IRS-blessed. Done right, cost segregation saves an STR owner tens of thousands of dollars in the first year. None of that is in question.

But the work — asset classification, depreciation math, report formatting — has been the same for decades. What used to require a team of people and a thick PDF can now be done by software in minutes.

The reason it still costs $5,000 isn't because the work is hard. It's because a lot of firms have been making a lot of money providing very little, and no one was incentivized to change that. The fear-based sales pitch keeps the lights on. The opacity keeps the margins fat.

I also learned that when companies say "engineered," there usually aren't any engineers involved. Trust me — I checked. I asked. And I am, in fact, a real degree-carrying engineer.

So I built it for myself

I just wanted a study I could trust, on my own properties, without paying five figures for the privilege. I wanted to see how every number was generated. I wanted to stop being sold to with fear.

I wasn't looking for a startup. I was looking for a tool that didn't exist.

So I built it — and I built it right. CostSegLogic is grounded in IRS-aligned methodology, CPA-reviewed, and rigorously verified at every step. Every study it produces would hold up to the same scrutiny as one from a firm charging ten times the price.

Once it was working on my own portfolio, the next thing felt obvious: if I needed this, other STR owners do too.

What I believe

  • Cost seg shouldn't be gatekept. STR owners are some of the most legitimate users of this strategy, and they're the ones being priced out.
  • Fear isn't a feature. Defensibility comes from sound methodology and clear documentation — not a five-figure invoice.
  • Trust is earned by showing your work.
  • Thoroughness is the whole job. We don't ship half-answers.
  • Speed matters. Minutes, not weeks.
  • Your time matters more.

Built by an STR owner who just wanted a fair shake on his own taxes — and figured the rest of us deserve one too.

— SJ