Resources
Methodology
Projects require the Detailed Engineering Cost Estimate Approach to complete the cost segregation study. This approach utilizes the site plan and a site inspection with photographic documentation. Building and site improvement assets are identified, quantified and documented.

Asset costs are established using nationally accepted cost estimating manuals (R. S. Means Construction Cost Data) and appropriate unit price factors and/or multipliers are utilized to refine the unit pricing including location, fees, deflation and wear and tear depreciation. A qualified and experienced engineer prepares the worksheets, establishes the quantities and completes the costing.

A CPA specializing in cost segregation reviews each asset and classifies them all as real property (27.5 Year), land improvements (15 Year) or personal property (5 Year) and assigns the proper depreciable life for federal tax purposes. The asset class and associated lives for all personal property and land improvements are in accordance with Revenue Procedure 87-56, the current controlling Internal Revenue Service pronouncement.