DIY Cost Segregation requires assigning “proper recovery period” to each asset. It is an easiest way to reduce the cost of cost segregation. https://www.diycostsegregation.com/.

Do-It-Yourself Cost Segregation

We can reduce the cost of the cost segregation study materially, often by as much as 70%, if the scope of work does not require a site visit. This requires a team approach where you provide property photos / video and cost details along with other key inputs. Our team takes your information and through the use of our proprietary software, organizes it into a cost segregation report uncovering the maximum potential tax savings.

These Detailed Cost Segregation Reports can be used by you and / or your CPA to reduce your Federal income Tax liability. Depending on in service dates and prevailing federal law, this can either be as Bonus Depreciation or as multi-year accelerated depreciation.

The Facts About Do-It-Yourself Cost Segregation

DIY cost segregation in its purest form would be you or your tax preparer generating a guesstimate of the short life property found in your asset. It is legal providing you do not materially overstate the amount of depreciation. However, the IRS standard for calculating depreciation is specific.

Cost Segregation requires assigning the “proper recovery period” to each asset. A commercial or residential building may have over 100 short-life components. To do a credible job, you need to know which assets are 5, 7, 15, 27.5 and 39 year and how to value them.