Frequently Asked Questions
Cost Segregation Analysis

Will I be charged for a preliminary cost segregation analysis?

No. There is no cost for a preliminary cost segregation analysis.

 

Will my CPA or Enrolled Agent be familiar with the benefits of a cost segregation analysis?

Most will be familiar with the benefits of accelerated depreciation and the long term deferral of state and federal taxes. Feel free to have your CPA or Enrolled agent contact us if he or she has any questions.

 

How long does it take to complete a cost segregation analysis report?

It takes approximately six weeks from the time the required information is received.

 

Can I obtain a cost segregation analysis for a building that is under construction?

For projects under construction, we can provide a preliminary estimate. The final study will be delivered when the construction is completed.

 

Is cost segregation and accelerated depreciation an approved method of depreciation?

Absolutely. Both the Journal of Accountancy and the American Institute of Certified Public Accountants (AICPA) recognize cost segregation and accelerated depreciation as an approved method of depreciation.

 

What does the term engineering-based mean?

It means that one or more engineers will be involved in developing the final report submitted to you.

 

Will my property be physically inspected as part of the process?

Yes. We have professionals that inspect income producing properties throughout California.

 

Can I perform my own Cost Segregation Analysis?

Unless you have a staff of accounting, tax, construction, and engineering experts available, you should hire a professional firm.

 

We own a single rental home. Is it cost effective to obtain a cost segregation analysis?

The answer is probably yes. A preliminary analysis costs nothing, so you are encouraged to obtain one.

 

What are some of the separate building components that can be depreciated in less than the 27.5 years for residential income properties or 39 years for commercial properties?

Since every building is unique, the list of separate building components will vary from building-to-building. Following is a partial list of typical components that may apply to your building:

 

Air conditioning Systems
Appliances
Awnings
Bathtubs and Sinks
Cabinets
Carpeting and Pads
Carports
Ceiling Systems
Counter Tops
Doors and Frames
Dumpster Enclosures
Elevators
Emergency Exit Signs
Emergency Lighting
Exhaust Fans
Exhaust Hoods
Exterior Signs
Fences
Fountains

Garbage Disposals
Gutters and Downspout
Heating Systems
Landscaping
Lightning Systems
Linoleum Flooring
Magnesite
Mailboxes
Moldings
Outdoor Planters
Painting
Parking Lots
Patio Covers
Paving
Pedestrian Gates
Plumbing Fixtures
Plumbing Pipes

Roofing
Security Systems
Sidewalks and Curbs
Solar Systems
Spas
Sprinkler Systems
Sump Pumps
Swimming Pools
Tile Floors
Vehicle Gates
Vinyl Flooring
Wall Coverings
Water Features
Water Heaters
Window Screens
Windows
Wiring
Wood Flooring

 

 

Request Proposal or Information

Glossary of Cost Segregation Analysis Terms

Glossary of Accounting Terms

Pacific-Realtors.net
818-991-5200