Questions & Answers
What are the reasons Cost Segregation Benefits are often overlooked?
a) Commercial Property Owners are not aware of the magnitude or importance of the
b) All Components Of “real estate” are assumed to be “real property” for Federal tax
purposes. Complexity of the tax law requires familiarity with numerous IRS
sections, regulations, revenue rulings and case law.
c) CPA’s & The Property Owner are unable to extract the necessary detail from
contractor invoices and payment applications, or the property is purchased well
after the building has been built and the necessary information is not available.
Will a cost segregation study (CS) increase my chances for an audit?
NO. Our engineered CS approach is considered a conservative methodology and
does not draw a red flag to our clients. Each study is supported at no additional cost if
ever to encounter an audit.
How much can I expect to benefit for have a CS study.
Property owner (and lease/hold tenants) can expect a tax benefit from 10-75%, depending on the type of property. Look at this chart for your property.
Is there a certain time period in which I must qualify for a CS study?
No. Whether you recently built a building or have owned your property for 10-20 years, you
are entitled to these tax benefits.
Is my CPA already doing CS?
Probably not, at least not with on site engineering and the appropriate level of detail or
How much does the Cost Segregation Study Engineering cost?
This depends on the type and complexity of the property. In general, the pay back period
for a CS study is 2 months or less.