Will a Cost Segregation Study require a change in CPA firms?
No. Cost Segregation Studies can be prepared for
those who already have a CPA. Our report contains the information
for a CPA tax preparer to properly reflect the results of the
Cost Segregation Study on the tax return.
2. What is required for a Cost Segregation Study?
The Cost Segregation Study requires a site tour
and/or construction documents and a copy
of the depreciation
schedule. In some cases additional information may be
3. Can a Cost Segregation Study be prepared for a
property that was not purchased this year?
Generally speaking, a Cost Segregation Study can
be beneficial if the property was purchased in the last 10 – 15 years;
however, benefits are maximized in the year of purchase. The value
and the type of property will affect the degree of benefit. Call us for a free evaluation to estimate whether a study would be beneficial.
4. What is the minimum tax value of the property
required in order for a Cost Segregation Study to be beneficial?
The minimum tax value is approximately $400,000,
depending on the type of building and when the building was purchased.
5. Can a Cost Segregation Study be prepared by any
No, not typically. A Cost Segregation Study is an
analysis of the component parts of Commercial Real Estate Property.
It requires an understanding of IRS guidelines for those component parts qualifying for shorter depreciable lives and knowledge of Commercial Real Estate taxation and Construction Engineering.