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The Art of Cost Segregation: Minimizing Taxes without Triggering an IRS Audit

Nov 09, 2023

     The world of tax planning is filled with myths and misconceptions, one of the most prevalent ones is the fear that a cost segregation study will trigger an IRS audit. In reality, a properly conducted cost segregation study not only provides significant tax benefits but protects against disaster, loss, or IRS audit. In this blog post, we will debunk this myth and shed light on the importance of choosing a Tier 1 study by the Cost Seg America team.

     It's not uncommon to hear property owners express concerns about IRS audits when considering a cost segregation study. The truth is that the IRS DOES NOT flag cost segregation studies for audits simply because they are conducted. The IRS, like any other government agency, conducts audits based on specific criteria and suspicions of non-compliance. A cost segregation study, when done correctly, is a legitimate and recommended tax planning strategy within the bounds of tax law.

     While cost segregation itself does not trigger an IRS audit, the quality of the study can make a significant difference when it comes to defending your tax write-offs in the event of an audit. This is where the value of a Tier 1 study from the Cost Seg America team triumphs.

  1. Comprehensive Component Valuation: A Tier 1 study, by the Cost Seg America team, meticulously evaluates each and every component of your building. Our comprehensive approach ensures that you capture the maximum number of eligible components, resulting in the greatest amount of federal tax write-offs.

  2. Defensibility: One of the key advantages of a Tier 1 study is its defensibility. Having a thorough and well-documented cost segregation study provides you with a strong defense in the event of an audit. The Cost Seg America team's detailed report identifies each and every component of the building and it provides the supporting evidence and documentation needed in the event of an IRS audit.

  3. Industry Reputation: Tier 1 studies are recognized and respected within the industry. The Cost Seg America team, with over two decades of experience, has a reputation for delivering top-quality Tier 1 cost segregation studies that stand up to IRS scrutiny.

     The fear of triggering an IRS audit should not deter property owners from exploring the benefits of cost segregation. A Tier 1 cost segregation study conducted by the Cost Seg America team not only results in significant tax savings but also provides the most defendable study in the industry. Don't let misconceptions hold you back from achieving financial success through cost segregation.

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