Building structure
The building shell and structural elements provide the starting point for distinguishing other component categories.
Cost segregation studies
What the study covers.
What your CPA receives.
SegPro examines the components of income-producing real estate and documents their classifications for depreciation purposes.
Reply to the emailThe analysis
A building contains
more than its structure.
Cost segregation separates relevant personal property and land improvements from the building structure. Some components may have shorter depreciation recovery periods.
The analysis is specific to the property and its use. SegPro reviews the components and prepares the supporting documentation; your CPA evaluates the tax treatment.
Accelerating eligible deductions can change when tax benefits are realized. The effect depends on the property and the owner’s tax circumstances.
Component review
Three parts of the property.
Personal property
The study examines property-specific items such as certain interior finishes, fixtures and equipment.
Land improvements
Exterior features such as landscaping and parking improvements are considered separately from the building itself.
Examples describe the review, not a predetermined classification for any individual asset.
From review to report
How the study moves forward.
Initial conversation
Share the property details and your objectives. SegPro discusses the potential study and the information needed to review it.
Property analysis
The team reviews the building’s components, use and classifications.
Detailed report
The study documents the component analysis and depreciation schedules.
CPA coordination
SegPro works with your CPA on the findings. Your tax adviser determines how they apply to your filings.
The deliverable
Findings your tax
adviser can review.
The detailed report records the component analysis, classifications and depreciation schedules. It gives your CPA documentation to consider when applying the findings to your return.
For an initial conversation, have the property address, use, acquisition or construction background, and information about major improvements ready if available. SegPro can explain the documentation needed for your study.
Ask about your property