About
Cost Segregation
Cost Segregation is the IRS approved process of accelerating depreciation on a Real Estate asset by separating non-structural personal assets and land improvements from real property assets.
In general, buildings can be depreciated over either a 27.5 year (residential properties) or a 39 year (commercial properties) period based on their classification as Section 1250 property, but certain categories of assets within a building can be depreciated more quickly, over five, seven, or 15 years due to their reclassification as Section 1245 property.
Step 1
Get an analysis to see if cost segregation is right for your property.
Provide some basic information about your property to get a no-cost Feasibility Analysis of tax and cash flow benefits. This will help you see your estimated gains and cost to see if a cost segregation study is right for you. Review this proposal with your local CATS representative (and possibly your CPA). After signing a contract and receiving a 50% deposit, we’ll begin the cost segregation process.
STEP 2
We gather important information from you upfront, then do all the heavy lifting.
Our professional project management team walks you through collecting the pertinent property & cost information we need. We don’t ask for more than we need to, and we don’t create lots of work for you throughout the entire process.
Step 3
Our engineers inspect your property and itemize your assets into more detail than traditional cost segregation studies.
We coordinate a time for our engineers to inspect your property. They fully document, engineer and photograph the property in compliance with IRS guidelines. Using proprietary tablet technology that finds more tax benefits for you, our team seamlessly works in the background and doesn’t interfere with any daily operations of the property.
Step 4
After inspection, our team develops your report.
After the inspection and on-site data gathering by CATS’s in-house engineer, the information is analyzed to find assets that can be depreciated faster than 39 years, reducing your current tax liability and improving your cash flow. The report is run through strict quality control to meet IRS guidelines and to maximize your benefits.
Step 5
Receive your report, get your benefits.
We deliver your “CPA-ready” final report along with Asset Management detail. None of our studies have ever been rejected or denied by the IRS. Enjoy decreased tax liability and increased cash flow.