“Data Driven” cost segregation is our proprietary engineering modeled report utilizing property data, and reviewed by engineers. This report will be processed and delivered within 3 business days of completing the property questionnaire.
The study is completed using client-provided details, online property records, and internal engineering. Once we receive payment, the remainder of the form becomes available based on the selections you made. For example, you will be asked to enter or verify the data we have instantly populated for property characteristics related to size, number of beds, baths, appliances included in the purchase, flooring, and more. Once you have submitted your details the property is processed through our model and reviewed by one of our engineers who will cross reference your provided data, online records, and historical averages to ensure accuracy.
The end result is a breakdown of the cost basis of your property into the identified building components, their book value, and recovery periods. As an example, we determine the total cost of cabinetry, rather than the quantity in linear feet of cabinets.
Once we have completed this process (approximately 3 business days), you will receive two files. Narrative Final Report- This is a PDF that outlines your results, the property details, our methodology, and the approach to identifying and reconciling cost in accordance with the standards outlined in IRS publication 5353. The intent is to provide detailed documentation to highlight the 13 characteristics of a quality cost segregation study.
Fixed Asset Schedule & Depreciation Schedule- The first sheet of this excel file is the fixed asset schedule. This provides your CPA with exactly what you need to calculate depreciation. The second sheet includes the depreciation schedule for each asset identified. This document breaks your property down into each building component with its associated; book value, placed in service date, recovery period, GDS depreciation conventions, applicable bonus depreciation rate, and the default and irrevocable depreciation method elections (200% declining balance, 150% declining balance, and straight line). The depreciation schedule shows the depreciation you will take for each asset, year after year. For capital improvements, that have been placed in service after the initial property was placed in service, you will just need to add the date these assets were placed in service in the fields that say “ENTER DATE”, then the depreciation will be calculated automatically. We are proud to provide clients and CPAs with tools that go far beyond the support most providers offer.