The Audit Technique Guide states that accelerated depreciation is an “advantageous depreciation deduction option for taxpayers.” If you are a building owner, you would be well served to develop a best practice for depreciation deductions and a trusted resource to provide the necessary calculations.
Building owners and tax professionals often assume all cost segregation methods are comparable. In actuality, not all cost segregation reports are created equal, and many cost segregation reports will not define their method.
Determining quality is a challenge for tax professionals and building owners. There are growing options and companies that offer cost segregation services.
Ask yourself, who is my trusted resource for accelerated depreciation, or what is commonly known as cost segregation? Have I developed a strategy to address depreciation and recapture? Do I have accurate perspectives on common considerations: recapture, active-passive considerations, and 1031 exchanges? Should I have a third-party expert?
Things to Consider:
- All cost segregation methods do not produce the same or comparable ROI when the fee is considered.
- Not all studies define building systems.
- Not all methods produce the same level of documentation and defensibility.
- Building owners and practitioners need to identify a trusted calculation/documentation resource.
A study that is both accurate and well documented is considered a “quality” cost segregation study. In most scenarios, there is a positive correlation between high-quality documentation and ROI for taxpayers.
If you do not have a trusted resource for cost segregation expertise, we look forward to reviewing your scenario. We will earn your business on track record, exceptional client experiences, the most in-depth knowledge base in the industry, and, most importantly, integrity in both the study result and traditional common-sense business practices.
A CSSI Cost Segregation Study is a “quality study” and CSSI the nameplate of the industry.
By: Tim Ibbotson