Cost Segregation Documentation for Tax and Professional Review
The Valuation Group prepares cost segregation studies and supporting schedules designed to document property components, cost allocations, depreciation classifications, and the analysis supporting the study.
Our work supports property owners, real estate investors, businesses, CPAs, tax advisors, attorneys, and advisory teams that need organized cost segregation documentation for tax planning, reporting, review, or potential examination.
Why The Valuation Group
A cost segregation study must do more than produce a list of reclassified costs. The report should identify the property reviewed, the records considered, the components analyzed, the classifications applied, and the basis for the allocation.
Our work is organized for professional review, with schedules and explanations that help the taxpayer's advisors understand how the classifications were developed and what information supports them.
We prepare cost segregation reports that identify building components, shorter-life property, site improvements, structural components, land allocations, and other relevant property classifications.
Our supporting schedules are designed to assist CPAs and tax advisors in reviewing the allocations and incorporating the results into the taxpayer’s depreciation records.
Cost segregation documentation may include analysis of interior improvements, electrical systems, plumbing components, flooring, cabinetry, lighting, signage, specialty systems, equipment connections, paving, landscaping, exterior lighting, and other property components.
The Valuation Group reviews the available records and prepares schedules that connect the property components to the cost allocation and depreciation classification.
Our analysis may involve review of acquisition documents, settlement statements, construction invoices, contractor records, fixed asset schedules, depreciation records, project budgets, appraisals, plans, photographs, and other available documentation.
We focus on creating a clear record of what was reviewed and how the classifications were developed.
We work with the taxpayer’s professional team by providing the cost segregation study, schedules, and documentation needed for review and reporting.
Our role is focused on the property analysis and supporting work product. The CPA or tax advisor remains responsible for applying the appropriate tax treatment in the context of the taxpayer’s overall tax position.
Related Cost Segregation Issues
Cost Segregation
for Acquired Properties
Acquired properties require documentation supporting the allocation of purchase price among land, building, shorter-life property, and site improvements.
Cost Segregation for Renovations, Improvements & Build-Outs
Renovation and build-out projects require support for the classification of constructionand improvement costs.
