Site Visits for Cost Segregation: In-Person vs. Virtual Explained
Site visits are a key part of cost segregation. But what happens during a site visit, and how do in-person and virtual site visits differ? Well, we'll break it down. A site visit is when our team inspects your property to identify and document the assets that qualify for accelerated depreciation. This includes looking at things like lighting, flooring, HVAC systems, and land improvements.
For in-person site visits, an engineer physically visits your property, taking detailed measurements and photographs. This option is often ideal for large or complex properties where precision is critical. For virtual site visits, we use this for simpler properties or where logistics make an in-person visit difficult. We can conduct this type of a visit, which involves using high-quality video footage, photographs, and detailed information provided by the property owner or manager.
Both options provide reliable results, but in-person visits may offer additional insights for unique or customized properties. If you're not sure which type of site visit is right for you, let's discuss the options and we'll create a plan that's tailored to your needs.
Category
On-Site Visit
Virtual Visit
Highest Accuracy
Ability to capture every detail of the building’s components, materials, and systems.
Strongest IRS Audit Defense
Level of defensibility if the IRS requests documentation supporting the study.
Identification of Hidden Components
Ability to inspect areas that are normally not visible on camera (above ceilings, inside mechanical rooms, structural details).
Best for Large / Complex Properties
How suitable the method is for industrial, manufacturing, hospitals, hotels, or multi-building sites.
Engineer Handles Full Inspection
Level of involvement the engineer provides without client assistance.
Scheduling Flexibility
How fast and easy it is to schedule the inspection.
Cost to Client
Relative cost considering time, travel, and resources.
Higher
Lower
Convenience for Client
Impact on the client’s time, involvement, and property access.
Client Participation Needed
Does the client need to assist with video, photos, or guided walkthroughs.
Documentation Quality
Quality and completeness of photos, videos, and measurements taken for the study.
IRS Acceptance
Whether the method is accepted by the IRS for cost segregation.
Fully Accepted
Risk May Arise
Client Liability
Who is responsible for capturing accurate building information.
Low — engineer documents everything
Higher — client must ensure accurate footage
Cost Segregation Study: On-Site vs Virtual Visit
Choosing the right inspection method is an important part of completing a high-quality Cost Segregation Study. Property owners today can choose between a traditional on-site site visit or a more convenient virtual site visit, and each option comes with its own benefits depending on the size, complexity, and timeline of the project. Our comparison table below highlights the key differences in accuracy, IRS audit defense, cost, scheduling, client involvement, and ideal property types. Whether you're evaluating the best method for a commercial building, multi-family property, or an industrial facility, this guide helps you understand which approach provides the most value for your specific tax strategy. Use this table to compare features side-by-side and determine whether an on-site or virtual site visit is the right fit for your Cost Segregation Study.
Get Your Free Cost Segregation Analysis
Which option gives better audit defense?
On-site studies provide the strongest defense, but well-documented virtual studies are still defensible—especially when completed by a licensed engineering firm like ETS.
What is an on-site Cost Segregation site visit?
A physical inspection where an engineer visits the property to:
Inspect systems
Document materials
Measure components
Identify hidden or complex assets
Best for:
Large, industrial, or complex buildings.
What is a virtual Cost Segregation site visit?
A remote video walkthrough using:
Live video conference, or
Client-recorded footage
The engineer guides or reviews the footage to classify assets.
Best for:
Standard commercial, multi-family, retail, and office properties.
Is an on-site visit more accurate?
Yes.
On-site inspections offer deeper visibility into:
Mechanical systems
Electrical components
Structural elements
Hidden assets
Virtual is still reliable—but slightly limited.
Does the IRS accept virtual site visits?
Yes.
Virtual site visits are fully IRS-compliant when:
High-quality footage is used
Sufficient documentation is provided
A licensed engineering firm performs the study
Are virtual studies cheaper?
Yes.
Virtual studies eliminate travel costs and reduce time, making them more budget-friendly.
Are virtual studies faster?
Yes.
Virtual inspections can be scheduled within 24–72 hours, whereas on-site visits may require more coordination.
Which is better for annual updates and tax planning?
Both work, but On-site visits generally produce more granular documentation, which can support:
Annual fixed asset updates
Repair vs capitalization classifications
Disposition tracking
Recapture minimization strategies
How do I decide between On-Site vs Virtual?
Choose On-Site when:
✔ Property is large or complex
✔ Mechanical/industrial systems are involved
✔ You want maximum audit defense
✔ You want the highest accuracy possible
Choose Virtual when:
✔ Speed matters
✔ Budget is limited
✔ Property is standard (retail, office, MFH)
✔ Travel access is restricted