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Home » Services » Cost Segregation » When and how often should I do a study?

Should you do a cost segregation study before or after a construction rehab? Do it before any improvements.

Because cost segregation sets a baseline for the original purchase, it’s easier for us and the IRS to set that baseline by performing the study before the rehab, with an engineer documenting the reclassification, before the improvements are made. It’s harder to document your rehab costs after you’ve renovated.

After the rehab, you’ll have receipts and invoices that tell us the exact cost of the new items. With your cost seg report pre-rehab and receipts/invoices to justify the cost of anything new and details on what was replaced, you’ll have everything you need to apply bonus depreciation/partial disposition elections/repair rules. If you go ahead with the improvements, you can revert back to the original cost seg studies and calculate your partial asset disposition.

If you go ahead with your cost seg study, we will:

  • classify or reclassify each building component into the appropriate tax life as prescribed by IRS guidelines and identify
  • allocate indirect costs to each asset, and
  • complete a written report with the asset details supporting the reclassifications and completion of the necessary tax form(s).

In other words, after you commission your study, you can leave the driving to us. We’ll handle all the details and work with you to get the most advantageous tax break. We’re experts at cost segregation; we’ve completed over 30,000 studies in the last 20 years.

Our clients save an average of $200,000 by commissioning a cost seg study with us. You may be able to recoup more. Please contact us and see how much in tax savings we could possibly deliver to your door.

Case Study: Restaurant

cost segregation case study

eBook: Property owners guide to Cost Segregation

Learn how you can significantly increase your tax savings with a Cost Segregation analysis.

Tools: Dispostion Calculator

Calculate a disposition deduction for fixed assets removed, demolished, retired or no longer in service.

Webinars: Cost Segregation

Testimonials: Our valued clients

Melissa Flagstad, Partner
Melissa Flagstad, PartnerUS Facilities Lighting
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“Engineered Tax Services (ETS) found 250k in tax credits for one of our manufacturing clients. ETS makes our business bigger and stronger. Not much more you can ask from a partner.”
William Mays
William MaysGoldin, Pesier & Pesier, LLP
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“The entire ETS team includes professionals of the highest caliber…they have proven to be a true partner to our firm – as well as the clients we have engaged. With ETS, we have added Section 179D to our service offerings. This has gotten us to the table with many coveted prospects with whom we had been previously shut out. ETS is an outstanding partner, demonstrating high intelligence, entrepreneurial spirit, expertise, quality, professionalism and responsiveness. We are looking forward to incorporating their cost segregation services for the benefit of our clients in the near future.”
Goldstein Schecter Kosh
Goldstein Schecter KoshGoldstein Schecter Kosh
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“Engineered Tax Services has been a very valuable engineering resource to our firm over the past decade. We find their firm the only licensed engineering firm to be uniquely qualified to handle the complex issues regarding cost segregation, 263a, 179D and repair and maintenance. We did our due diligence and the results speak for themselves as Engineered Tax Services is the dominant engineering resource to the CPA community.”
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Tele-Engineering™: A Contactless Study as a COVID Safeguard

While traditionally cost segregation studies are conducted onsite, the COVID-19 pandemic calls for a safe alternative—one that provides you with the same ability to reduce tax liabilities and increase cash flow.

Tele-Engineering – a virtual approach to cost segregation – offers the same high level of detail and support as in-person visits, while eliminating costs and social safety issues.

Case Studies Cost Segregation

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Cost Segregation study on a $2.6 Million Apartment Building in Jenks, OK

Without a Cost Segregation study, a $2.6 Million Apartment Building in Jenks, OK, purchased in 2019 would have generated a 1st year depreciation of $38,888.89. …

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Cost Segregation study on a $392,000 Apartment Building in Hillsborough, NH

Without a Cost Segregation study, a $392,000 Apartment Building in Hillsborough, NH, purchased in 2019 would have generated a 1st year depreciation of $8,469.14. By …

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Cost Segregation study on a $983,000 Apartment Building in Concord, NH

Without a Cost Segregation study, a $983,000 Apartment Building in Concord, NH, purchased in 2019 would have generated a 1st year depreciation of $21,237.66. By …

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How An ETS Cost Segregation Study Won a Client $105 Million in Tax Savings!

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