The Difference between Fully Accounted and Residual Studies
The Cost Seg America team performs a TIER ONE study, which is also called a “fully engineered and accounted” methodology. This study is forensic in its detail of both accelerated property (5, 7, and 15 year items) as well as the straight-line (39 or 27.5 year items), maximizing the allowable IRS deductions. Most companies provide a TIER THREE study or lower, which is also called a "residual" methodology, does not provide the same level of detail in front-loaded accelerated property, and usually bundle the straight-line property in just a few categories.
Why does this matter? Firstly, the Cost Seg America teams “fully engineered and accounted” methodology delivers complete asset management detail on each and every accelerated and straight-line items. The "residual" studies identify just the standard items and miss the hidden electrical, plumbing and mechanical details, leaving your money on the table. Secondly, the Cost Seg America teams report serves as an asset management report allowing you to easily identify future abandonment/disposition of items for future upgrades, improvements or repairs, and is in full compliance with the IRS Tangible Property Regulations. This provides you with the most tax write-offs and more importantly the best audit protection. |