To begin a Cost Segregation Study, we first examine the
current purchase price of your building and separate that
cost out into two separate categories — either land or
building. We use an appraiser for this step.
After the land portion has been separated
out of the project and the value of your building has been
determined, we will perform a detailed analysis on the
building itself. We will study the building carefully for
all items that qualify as personal property or land
improvements that were originally included in the purchase
price of your building. If available, building plans and
receipts for qualifying item purchases will be used to
assist in the study.
 Many qualified assets, which were
previously classified in 27.5 or 39-year depreciable lives,
will be eligible for re-classification into shorter
depreciable lives as a result of the study.
When the inspection is complete, we
will issue a report allocating the value of all components
found during the inspection, including project background
information, methodology, item classifications and their
descriptions. The report will also include references to
court cases, revenue rulings, tax citations, and photographs
supporting the re-classification of those items into shorter
depreciable lives.
Finally, we will use the report as
support to claim all allowable depreciation deductions when
preparing your federal and state income tax returns. |
