FAQ

The first step would be to complete the property analysis form so I can run a FREE estimate for you. The property analysis will estimate your tax savings and the actual cost of doing the study. If you decide to move forward with the engineer-based study, we will fill out a couple more forms and take a deposit of half down. A representative will contact you to schedule a time to do a walk through of the property. The report will take 6-8 weeks to complete. Once the report is complete, I will send you a summary of the findings. At this time you would pay the balance due and the full report will be emailed to you.

If you are a U.S. taxpayer with a tax liability, a cost segregation study can be a lucrative tax strategy. Let me provide you with a complimentary preliminary analysis to determine potential tax benefits.

A study can be completed in the year the building or improvements is placed in service. However, the U.S. tax code allows taxpayers to “catch up” on the depreciation that was not claimed from the first day the property was placed in service without amending prior years’ tax returns. A cost segregation study should be considered on any property with a remaining depreciable basis.

Cost Seg Advantage is contracted with CSSI® to complete the engineered-based studies. CSSI® has been in business since 2003, has completed tens of thousands of studies, and is the largest engineered cost segregation firm in the United States. CSSI®’s personnel are experts in cost construction, tax laws, real estate development, and construction experience to maximize your tax savings.

A CSSI® study has never triggered an audit, if you are under audit for any reason, and the CSSI® Study comes into question, CSSI® will defend the audit at no cost.

Cost segregation was typically reserved for the largest clients in major accounting firms with in-house cost segregation departments. Study costs were routinely upwards of $100,000.

The CSSI® study was created using the methods and protocols to deliver this same service to asset property owners at very affordable rates. By choosing the CSSI® Study, you can take advantage of this tax-saving strategy that was once only utilized by the owners of substantial properties.

Due to expanded bonus depreciation under the Tax Cuts and Jobs Act of 2017 (“tax reform”), cost segregation may be more beneficial to taxpayers than ever before. The new tax law extended bonus depreciation to used property and, through 2022, has allowed taxpayers to depreciate up to 100 percent of the cost of the property during its first year in service. Therefore, now is an opportune time for taxpayers to maximize bonus depreciation on qualifying business property—and cost segregation offers a convenient way to do so. By examining the various assets within a building, cost segregation may identify assets that qualify for bonus depreciation, thus helping taxpayers ensure that they are not missing any opportunities to take advantage of accelerated depreciation deductions.

What types of properties qualify?

• Short term rentals (STR)

• Long term rentals (LTR)

• Office buildings

• Retail centers

• Banks

• Apartment buildings

• Manufacturing facilities (heavy or light)

• Restaurants

• Hotels/motels

• Grocery stores

• Auto dealerships

• Theaters

• Golf courses

• Research and development centers

Note: These are just examples, many types of properties can qualify.

Yes. You are able to perform cost segregation studies on real estate purchased, built or improved in prior years. That’s because current IRS rules allow you to “catch up” the additional depreciation in the current tax year, and there’s no need to amend tax returns. In fact, you could see current-year tax benefits from real estate transactions that took place ten or more years ago depending on the size and purchase price of the asset.

While it is true that your asset will depreciate anyway, a cost segregation study can significantly increase your cash flow in the short term, and provides long-term benefits due to the time value of money (a dollar is worth much more to your business today than it will be in 39 years). Check out the case studies for a demonstration of the benefits of a cost segregation.

Typically, six to eight weeks to complete.

The cost and ROI of a cost segregation study will vary depending on the size of the property, building type, and other physical characteristics. Clients have realized an average ROI of 40 to 1. That’s right, if a cost segregation study costs $5,000 to conduct, the property owner would likely realize a net present value benefit of $200,000 (depending on property type and purchase price).

The IRS requires engineer-based cost segregation studies. Your study should be conducted by a firm that demonstrates expertise in engineering, construction, tax law and accounting principles. CSSI® has been in business since 2003 and has have never failed an audit based on their engineer-based study.