Only if you sell the property before the end of its depreciable life could you be required to recapture some or all of the bonus depreciation claimed. This recapture is treated as ordinary income and is reported in the year of sale. So, in a sense, you may have to “repay” the tax benefit you received from bonus depreciation if you sell the property at a gain.

Our fees are based on several factors, including square footage, property type, and complexity. Rest assured, we strive to provide cost-effective cost-segregation studies.

The IRS specifies the cost of a study should be based on the time required to perform the study; not a percentage of the projected or realized savings. The time involved in a study is driven by multiple factors.

Here are just a few aspects of the project that will impact the time involved to perform the study:

• How big is the building?
• What is the business activity in the building?
• How many tax years will be analyzed?

Easier said than done. You would need to have a CPA qualified in both taxes and construction, coordinate schedules, and meet them on the property…it’s a nightmare.

Absolutely! If you purchased your property last year, you’re in a prime position to benefit from a Cost Segregation Study.

Yes. Accelerated depreciation is deductible from your total income. It is a deliberate tax policy aimed at encouraging further investment.

Yes, you can be eligible for a Cost Segregation Study even if you have a W-2 job.

Cost segregation is not limited to individuals who are full-time real estate professionals or those with self-employment income. It can be beneficial for anyone who owns property, including individuals with W-2 income.

Accelerated depreciation itself is not taxable. Depreciation is a non-cash expense, meaning it’s a way to allocate the cost of an asset over its useful life for tax purposes. Accelerated depreciation allows you to deduct a larger portion of the asset’s cost in the earlier years of its useful life.

While the depreciation deduction reduces your taxable income, it doesn’t directly result in additional taxes.

While you don’t need to file the Cost Segregation Study itself with your tax return, the results of the study can significantly impact the information you report on your tax return. The details uncovered in the Cost Segregation Study, such as reclassified asset categories and their respective depreciation schedules, should be accurately reflected in your tax filings.

When we complete your cost segregation study, we will provide a report detailing the results of the study.

You or your CPA would then use this information to update your depreciation schedules on your tax return.

Your next best step is to schedule a 1-on-1 call with one of our specialists. They’ll be able to get your property qualified, tell you how much you can expect to save, and answer all of your questions regarding accelerated depreciation, cost segregation studies, and our process here at Remote Cost Seg.

The more detailed information you can provide, the better. This ensures a more accurate estimate, and we might ask for additional information to clarify our understanding of your particular project and needs.

At minimum, we need:

• Capitalized costs for your project
• Years that it was capitalized in
• Depreciation schedule, if available
• Brief description of your business
• Number of floors, square footage of the building site
• Property address

A study typically takes 30-45 days to complete. A dedicated Project Coordinator team will keep you up to date throughout the process and answer any questions you have regarding the services being conducted.

In real estate, Cost Segregation is a tax benefit strategy that is recognized by the IRS. It involves identifying specific components within a building or improvement project that can be classified differently for federal tax purposes—either as personal property or as land improvements, rather than as real property. This reclassification allows for accelerated depreciation schedules.

For example, the costs related to personal property components can be depreciated over a 5- or 7-year period, and land improvements can be depreciated over a 15-year period. This is faster than the standard 39-year or 27.5-year depreciation schedules typically applied to real property, thus providing potential tax advantages.