Frequently Asked Questions

The IRS states in its Audit Techniques Guide that a quality cost segregation analysis must be completed by those who have a complete understanding of engineering methodologies, construction pricing, and relevant legal citations.  Typical CPA’s may have some knowledge or experience in these areas, but are absent of the expertise required in engineering, construction, and real property.  Real Property Tax Incentives has the necessary skill and experience in each professional field as required by the IRS. 

A cost segregation study can be performed at any time during the life of the property regardless of the duration of ownership.  Newly constructed buildings, newly purchased properties, properties owned for several years, or even properties being sold or liquidated are candidates that can provide benefits. 

Absolutely not.  An Internal Revenue Service Attorney in Washington D.C. stated, "We are happy to see a cost segregation study performed on real estate.  If the study’s quality is apparent, then we know that there is a much better chance for the assets to have the accurate class lives than if a tax consultant simply makes random guesses." 

Whatever your audit risks, it will remain unchanged after application of Cost Segregation.

Any income generating property or real estate is a candidate for a cost segregation study. 

There is no standard fee for a cost segregation analysis because each property is unique.  The importance is to secure a competitive lump sum proposal up front that does not consider the substantial cash benefits for the owner.  Many service providers rationalize that the owner’s gains justify an increase in their fees.  Ask us for a no obligation proposal.

A Real Property Tax Incentives cost segregation study and report is organized and designed for the express purpose to answer the requirements of the IRS Audit Techniques Guide, which is the internal standard and “rule book” of the IRS for the cost segregation method.