AI-Powered Tax Tool Democratizes Cost Segregation for Real Estate Investors

Pasadena, Calif. – November 3, 2025 – For years, cost segregation – the practice of identifying and reclassifying building components to accelerate depreciation and reduce tax liabilities – has remained a complex and often prohibitively expensive undertaking for many real estate investors. But KBKG, a leading provider of specialty tax solutions, is aiming to change that with the launch of Cost Seg Pro™, an AI-powered software designed to bring this powerful tax strategy within reach of a wider audience.

Launched this week, Cost Seg Pro™ promises to streamline the cost segregation process, reducing both the time and financial burden traditionally associated with these studies. While larger investors and commercial properties have long benefitted from cost segregation, KBKG believes this new tool will level the playing field, allowing smaller investors and property owners to unlock previously inaccessible tax savings.

A Traditionally Complex Process

Cost segregation involves a detailed analysis of a property’s components, separating them into classifications with shorter depreciation lifespans (like personal property) versus those with longer lifespans (like the building structure). This accelerated depreciation can result in significant tax benefits, but historically, the process required specialized expertise and could cost thousands of dollars, limiting its accessibility.

“For a long time, cost segregation was seen as a luxury reserved for large-scale commercial projects,” explains a tax professional familiar with the practice, who requested anonymity. “The complexity and cost made it impractical for many smaller investors. Anything that can simplify this process is a positive development.”

KBKG’s AI-Powered Solution

Cost Seg Pro™ differentiates itself through its use of artificial intelligence. The software automates data gathering, analyzes property components, and generates the necessary schedules for tax filings. This automation significantly reduces the manual effort required, lowering costs and accelerating the process.

“We identified a gap in the market,” says a KBKG representative. “There was a clear need for a more accessible and affordable cost segregation solution. By leveraging AI, we've been able to create a tool that empowers a broader range of investors to take advantage of these significant tax benefits.”

Democratizing Access to Tax Savings

The implications of this democratization extend beyond individual investors. By making cost segregation more accessible, KBKG hopes to stimulate investment in real estate and foster economic growth. The software’s affordability – starting at $495 per report – is a key factor in achieving this goal.

“The biggest barrier to entry for many small investors was the upfront cost,” says a real estate tax advisor. “This software removes that barrier, opening up opportunities for them to maximize their return on investment.”

Navigating the Competitive Landscape

KBKG isn’t alone in offering cost segregation services. Established firms like Greenspoon Marder, Cost Seg Authority, and RSM US LLP also provide these solutions. However, Cost Seg Pro™ differentiates itself through its AI-powered automation and self-guided interface.

“Many of the existing players rely heavily on manual analysis,” explains an industry analyst. “KBKG’s software is a clear attempt to disrupt the market by offering a more efficient and cost-effective solution.”

The Role of Human Expertise

While Cost Seg Pro™ promises to streamline the process, experts caution that it’s not a complete replacement for human expertise. Complex properties or unique situations may still require the guidance of a qualified tax professional.

“The software is a great tool, but it’s important to remember that it’s not a substitute for sound tax advice,” says a tax professional. “Investors should always consult with a qualified expert to ensure they’re maximizing their tax savings and complying with all applicable regulations.”

Future Implications and the Evolution of Tax Optimization

The launch of Cost Seg Pro™ signals a broader trend toward AI-driven tax optimization. As artificial intelligence continues to evolve, we can expect to see more innovative tools that simplify complex tax processes and empower investors to make informed financial decisions.

“We’re at the beginning of a revolution in tax technology,” says an industry analyst. “AI is transforming the way we approach tax planning and optimization, and we’re likely to see even more disruptive innovations in the years to come.”

For KBKG, the launch of Cost Seg Pro™ represents a strategic move to position itself as a leader in this evolving landscape. By democratizing access to cost segregation, the company hopes to empower a new generation of real estate investors and drive sustainable economic growth. The success of this initiative will likely depend on the company’s ability to continue innovating and adapting to the changing needs of the market. As the industry watches, the question remains: is this software poised to reshape the future of real estate tax optimization?