Depending on the type of project, we review site surveys, blueprints, construction drawings and specifications. Additionally, we review general contractor, architect/engineer and private vendor invoices and change orders when applicable. We also perform a comprehensive review of all relevant financial records. We tour the facility and take photos to document critical issues; we also interview key personnel. We then identify and reclassify all eligible assets to shorter recovery periods with the goal of accelerating your tax depreciation deductions.
There is no charge for the initial assessment. If our assessment indicates that a cost segregation opportunity exists, we will give you a written fee estimate. Our fees depend on the size and scope of the project. Your tax savings generally greatly exceed our fees, and depending on the situation, you may recover the cost when you make your next quarterly payment or file your tax return.
We don't commit to performing a cost segregation study without providing you a free initial assessment and cost proposal. From that, you and your accountant can evaluate the cost versus savings factors upfront.
Although your accounting firm may be aware of cost segregation as a concept, it's unlikely that they have the in-house expertise required to conduct a cost segregation study for you. Accountants may be able to capture some of the tax deductions but most don't have the engineers on staff to inspect the property, examine the architectural and engineering documents and analyze the cost data.
Engineering-based cost segregation studies are accepted by the IRS for reclassifying assets in order to accelerate tax deductions for depreciation. Our experienced engineers have conducted hundreds of successful cost segregation studies. They apply the most current interpretations of IRS regulations, ensuring that our studies withstand auditing scrutiny.
Madison SPECS can find eligible assets in:
For existing properties, you can recapture "missed" depreciation for previously understated deductions with a simple change in accounting method, which Madison SPECS can help you file.
Most companies in the cost segregation business conduct studies that emphasize either the tax approach or the engineering approach. What differentiates Madison SPECS from these companies is that we truly integrate the two approaches:
