Acquisitions
Review the purchase records, basis allocation and dates for an acquired property, including transactions with additional basis or exchange considerations.
Cost segregation
Examine the assets, costs and records behind your property’s depreciation treatment.
What is cost segregation?
A cost segregation study examines property components and their appropriate tax classifications and recovery periods. The potential benefit is a change in the timing of depreciation deductions; the result depends on the property and the taxpayer’s circumstances.
Construction and renovations
Review construction costs, additions, improvements and the dates assets were placed in service.
Existing property
Evaluate existing depreciation schedules and prior treatment with the tax preparer before deciding whether a study or accounting-method change is appropriate.
Match the study to the property.
Property types
Cost segregation studies can involve commercial, residential rental, industrial and special-purpose properties. A property’s use, depreciable basis and individual assets need to be reviewed.
Classification and support
Document the methodology, asset classifications, allocated costs and supporting records. The IRS Cost Segregation Audit Technique Guide describes examination considerations; it is not an approval of an individual study.
Bonus depreciation
IRS guidance provides 100% additional first-year depreciation for qualified property acquired and placed in service after January 19, 2025. That does not mean every building component qualifies; acquisition rules, elections and limitations still matter.
A defined scope. Clear deliverables.
Discovery
Review the property facts, existing schedules and available documentation. Agree on the study scope and records needed.
Property review
Determine the analysis and any site inspection needed to support the work. Reconcile the classification and cost analysis with the source records.
Report and coordination
Agree on the report, methodology discussion and coordination with your CPA. Confirm timing, filing responsibilities and any post-delivery support in the engagement.
Related services.
We agree on the scope, specialist involvement and deliverables for each engagement.