Property Owner Cost Segregation Partnerships

After a free benefit analysis is offered from Cost Segregation Consultants you always want to meet with your accountant since they will be completing and signing your tax return. We ensure quality work so that if there is an audit, we have prepared our study with all of the necessary steps as outlined by the IRS code.  As needed, the accountant, the property owner, and the cost segregation advisor will meet and discuss the options and any questions at hand.

For older properties, many cost segregation firms charge a fee for a Form 3115. Cost Segregation Consultants provides this free as part of our study. You may need this with the tax return so you can realize savings on items not previously depreciated – without filing an amended return.

The best time to have a study completed is when you build or purchase a property, however, many studies are done on older buildings, and even those that have been sold already (the study must be completed in an open tax year). 

We complete studies of properties of various sizes. A cost basis of at least $200,000 will likely see some benefit after paying for the study to be completed. We even perform studies on single-family rental homes. If the cost basis is under $500,000, we consider it a RCE (Residential Cost Evaluator), and it can be less expensive and without a walk-through that is required by a normal study.

General partners who are not paying federal income taxes should perform a study, since K-1s will reflect lower taxable income to benefit their limited partners. The owner of the property has to put very little time, if any, into a study. They may have a conversation with their CPA or one of our professionals, or may have to collect some information for a proper quote to be given. This small amount of time can result in substantial tax savings.