The IRS favors cost segregation grounded in engineering, not rules of thumb. Here’s how a study moves from a no-cost feasibility estimate to a detailed, defensible report your CPA can file from.
Start With a Feasibility EstimateThe IRS’s own Cost Segregation Audit Techniques Guide favors studies built on an engineering analysis of the property and its costs, over “rule of thumb” estimates or simple percentages. That distinction is the difference between a study that holds up under examination and one that invites questions. Every study we deliver is engineering-based and fully documented.
Most studies are completed in a few weeks once records are gathered and the site is reviewed. Look-backs and construction studies can vary with complexity.
An engineering-based study generally includes a site inspection, it’s part of what makes the result defensible. Remote approaches are used only where appropriate and documented.
Yes. The report is built to hand straight to your tax preparer, with schedules and support formatted for the return. We coordinate with them directly if that’s easier.
We stand behind the studies we deliver and support them through examination, which is exactly why the engineering basis and documentation matter.
This page is general information, not tax or legal advice. Depreciation results depend on the property, the taxpayer’s facts, and applicable law, and are determined through the cost segregation study in coordination with your tax advisor. Novaric does not guarantee deduction amounts or any tax outcome.