Cost Segregation for Commercial Property Acquisitions
The Valuation Group provides cost segregation studies for acquired properties where the purchase price must be analyzed, allocated, and documented among land, building, shorter-life property, and site improvements for depreciation purposes.
Our work supports real estate owners, investors, businesses, CPAs, tax advisors, attorneys, and advisory teams involved in recently purchased commercial properties, owner-occupied facilities, investment properties, and real estate portfolio acquisitions.
Why The Valuation Group
Acquired properties frequently contain substantial value in assets that are not separately identified in the purchase documents. A properly prepared cost segregation study requires review of the acquisition records, property components, engineering characteristics, construction information, and financial data supporting the allocation.
Our analysis connects the acquired property to the cost records and physical components so land, building, shorter-life property, and site improvements can be allocated and documented in a supportable manner.
We analyze acquired properties to identify building components, land improvements, personal property, and structural elements that may qualify for different depreciation treatment.
Our work may include review of purchase documents, closing statements, construction records, contractor information, engineering reports, invoices, depreciation schedules, and other records supporting the allocation.
Many acquired buildings were constructed years before the current owner purchased them. A cost segregation study may still identify significant property components requiring separate classification and documentation.
The Valuation Group evaluates the property as acquired, together with the available records, to develop a supportable allocation among the appropriate property classifications.
Real estate investors frequently acquire multiple properties as part of a single transaction. We provide cost segregation support for portfolio acquisitions, phased acquisitions, and multiple-property transactions where consistent methodology and documentation are important.
Our role is to provide the cost segregation study, supporting schedules, and documentation needed by the taxpayer’s professional team. The CPA or tax advisor remains responsible for the overall tax engagement while relying on our analysis for the depreciation classifications.
