If a real estate investor acquires a small property it just does not make sense to hire an experienced cost segregation firm. However since each property has unique characteristics, the property owner is relied upon heavily to make sure that they take adequate pictures, accounting, and make sure that our allocations are consistent with theirs. Our reports should not be used on larger commercial properties as a result of more complex engineering and structural components.
Engineered cost segregation studies provide a quantified, qualified and verifiable analysis and segregation for the depreciation of assets classified as real estate into the much shorter class lives of 5, 7 and 15 years that are provided for items of personal property. This tax savings strategy can result is significant tax deductions at a minimal cost.