Cost Segregation Studies

How We Conduct a Cost Segregation Study

Similar to a research and development study, there is no cost to you for AGH Specialized Tax Solutions to conduct an initial scoping to determine whether your company could potentially benefit from cost segregation. This initial scoping provides an estimated benefit to you. Once the initial scoping is completed we provide the estimated cost to complete the study so a final decision to move forward can be made. Our fee is 100% deductible and, in general, clients routinely receive present value cash-flow savings of 10 to 20 or more times their investment for the cost segregation study.

Our studies involve the following steps:

Investigation of the Property

  • A thorough examination of architectural/engineering drawings and specifications to determine assets available for accelerated cost recovery
  • An on-site visit, inspection and documentation of the property
  • Discussions with you, your staff and other team members about the purpose and function of the property and related equipment

Review and Reallocation of Related Costs

  • Analysis of the capitalized costs, including the general contactor’s application for payment, change orders, architectural fees, owner-incurred costs and other submitted costs
  • Allocation of indirect costs to project assets
  • Classification of final project costs
  • Research of applicable tax authorities (e.g., court cases and revenue rulings, state sales/use tax law and related cases, etc.)

Recommendations and Report

  • Preparation of final report with detailed breakdown of assets by appropriate recovery period