Cost Segregation Services "Review"

 

The Cost Segregation Review is your no cost, no obligation way to discern exactly what an engineered Cost Segregation Study* can do for you or your client.  By providing some basic information, we shall provide an estimate concerning the benefits of an engineered Cost Segregation Study, along with information on the cost of a formal Study and instructions on how to proceed if such an application is deemed fitting.  If the Review determines there would be no benefit to completing such a Study, we will explain why and shred all your materials. 

The following items are needed to complete a Cost Segregation Review: 

1.        The date the building(s) was (were) purchased or constructed.  

2.        Purchase price or cost of construction excluding land and dates and cost of significant improvements or expansion. 

3.        Depreciation Schedule-detailed. 

4.        Type of building, office, warehouse, medical, residential (single family, multi ) 

5.        Name of the entity that owns the building(s) or client number if confidential.

 

We guarantee the confidentiality of all information provided 

With this information Cost Segregation Services shall complete our free, no obligation Review which shall outline a summary of the estimated tax benefits which can be expected from an engineered Cost Segregation Study. 

The introduction of the accelerated cost recovery system (ACRS) and the modified accelerated cost recovery system (MACRS) eliminated the use of component depreciation, but not the use of cost segregation. Hospital Corporation of America [HCA] v. Commissioner, 109 TC 21 (1997), is the seminal cost segregation case. In it the Tax Court permitted HCA to use cost segregation with respect to a multitude of improvements. Critical to the Tax Court's analysis was that in formulating accelerated depreciation methods, Congress intended to distinguish between components that constitute IRC section 1250 class property (real property) and property items that constitute section 1245 class property (tangible personal property). This distinction opened the doors to cost segregation.

* Per Internal Revenue Service guidelines, the Service is very clear that the proper application of cost segregation involves an engineered study performed by a disinterested third party.