SegStream is the only purpose-built cost segregation software that’s integrated with RSMeans.
In cost segregation, accuracy is key. However, you’ll also be making countless estimates when doing a cost segregation study. To make sure those estimates are accurate, you’ll need to use the best construction estimating tools available.
For cost segregation, RSMeans is the best estimation tool available. In this article, we’ll discuss why we integrated RSMeans with SegStream software and how you can use it to save time and make accurate estimates.
What is RSMeans?
RSMeans is an annually updated database for construction cost estimating from a company called Gordian. It holds estimates for every aspect of construction, including the cost of components within a residential or commercial building that you’ll identify in a cost segregation study.
It’s known as the gold standard for accuracy in construction estimating, as engineers spend over 30,000 hours researching and confirming costs. The database holds over 92,000 estimates.
In terms of accurate construction estimate databases, there is no viable alternative to RSMeans. It has more details and accuracy than any other database could provide, and the people who manage it put in a great deal of effort to keep it accurate and up to date.
Why is RSMeans important for accurate cost seg studies?
When doing a cost segregation study, you’re creating a tax basis allocation for all of your client’s property components, broken down by type and depreciation period. Due to the nature of this work, you’re going to need to make a lot of estimates. If you want your cost segregation study to be IRS-compliant, those estimates need to be reasonable and accurate.
Because RSMeans is the most accurate and up-to-date cost estimation database, you should feel more comfortable when using it to estimate costs on cost segregation studies than other methods. It is considered a reliable tool for making reasonable estimations by the IRS. Using it sets you up with the most defensible estimates should your client get audited after taking cost segregation.
How is RSMeans connected to SegStream?
RSMeas is connected to SegStream’s cost segregation software through a seamless integration. When you answer questions about your client’s property in SegStream while completing your study, it will automatically use the RSMeans database to create estimates based on what you entered.
For example, if you put in “6,000 sq. feet of vinyl flooring” for an office building, SegStream will automatically look up the cost for that in RSMeans and provide an estimate in the software. As you complete your study, SegStream will add the total of all RSMeans estimates into different buckets based on the depreciation periods of 5, 7, 15, 27, or 39.5 years. These will add up to the depreciable tax basis for your cost segregation study.
SegStream is the best choice for your cost seg workflow
To produce cost segregation studies at scale, you need fast and reasonable estimates. Using SegStream plugs the RSMeans database directly into your cost segregation workflow. You provide the information on your client’s property, and SegStream automatically connects with RSMeans for the best estimate possible. If you want to take on more clients or just do more cost segregation studies in less time, this is the best workflow available.