Every study begins with a defensible land allocation.
We establish the land-to-building ratio (LBR) using county assessor data or an appraisal with the cost approach — because land is not depreciable; only the building and its components qualify.
Why it matters · LBR is the #1 issue a cost segregation examiner challenges.The IRS can throw out the study if no site visit was performed.
Our SiteWize platform captures photos, component takeoffs, and inspection notes on-site — documenting every reclassified asset the moment we see it.
Why it matters · IRS ATG lists site inspection as a “principal element” of a quality study.All We Ask In Return
Guarantee runs for the full IRS statute of limitations on the tax year the study applies to.1. Treas. Reg. §1.167(a)-5 — Apportionment of basis. When property is acquired for a lump sum, basis must be allocated between depreciable and non-depreciable assets; land is not depreciable, while the building and its components qualify for depreciation under IRC §168.
2. IRS Cost Segregation Audit Techniques Guide — Identifies on-site inspection and engineering-based cost analysis as principal elements of a “quality” cost segregation study.
3. Rev. Proc. 87-56 — Establishes the class lives and recovery periods for depreciable property under MACRS, providing the framework for assigning assets to 5-, 7-, 15-, 27.5-, and 39-year recovery periods used in cost segregation.