| How does the IRS view Cost Segregation?
The IRS effectively endorses cost segregation studies. The IRS Cost Segregation Audit Techniques Guide describes cost segregation;
"When only lump-sum costs are available, cost estimating techniques may be required to 'segregate' or 'allocate' costs to individual components of property (e.g. land improvements, buildings, equipment, furniture, fixtures, etc.). This type of analysis is generally called a 'cost segregation study,' 'cost segregation analysis,' or 'cost allocation study'."
The primary concern of the IRS is that the cost segregation study be performed using detailed methodologies by engineers, architects, and other professionals with expertise in construction cost estimating technique.
NOTE: Our Tier 1 methodology is the most recommended study approved by the IRS. Our study also offers the highest level of audit protection in the industry. |
