What is the IRS position on cost segregation?
Cost Segregation is recognized by the IRS.
Although, as you can imagine with the IRS,
there are specific requirements that need
to be followed.
The IRS issued chief council advice on cost
segregation in 1999 with the following requirements:
Taxpayers must have a contemporaneous, independent
analysis to substantiate any reclassification
of personal assets. The IRS furthered their
position on cost segregation by issuing an
audit technique guide in 2004.
Now you may ask yourself, "great, I know a
little history on cost segregation. How do
I translate that into reducing my chances
of an audit?" It is extremely important to
engage with a firm that specializes in cost
segregation. Equally important Is the need
for an independent engineering study to support
the personal property reclassifications, and
a substantiating report following IRS guidelines.
To view a sample cost segregation report that
exceeds IRS standards;
Call your CSS representative for a free estimate
of savings and consultative session.
