In the IRS Cost Segregation Audit Techniques Guide (ATG), Chapter 4, the prime attribute of a high-quality cost segregation study is “preparation by an individual with expertise and experience.”  The Audit Techniques Guide adds:

“Preparation of cost segregation studies requires knowledge of both the construction process and the tax law involving property classifications for depreciation purposes.  In general, a study by a construction engineer is more reliable than one conducted by someone with no engineering or construction background.  Experience in cost estimating and allocation, as well as knowledge of the applicable tax law, are other important criteria. 

With over 15 year’s experience, Ambrose Cost Segregation professionals are trained in using an engineering based approach to identify components that qualify for accelerated depreciation.  Our extensive experience and knowledge of current legislation, regulations, and court cases will provide you with a thorough and supportable analysis.  The methodologies and procedures we employ rely on fully documented engineering and appraisal techniques.

David Ambrose