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What is the IRS position on cost segregation?
Cost Segregation is recognized by the IRS.
Although, as you can imagine with the IRS, there are specific requirements that need
to be followed. The IRS issued chief council advice on cost segregation in 1999 with the
following requirements:
Taxpayers must have a contemporaneous, independent analysis to substantiate any reclassification
of personal assets.
The IRS furthered their position on cost segregation by issuing an audit technique guide in 2004.
Now you may ask yourself, "great, I know a little history on cost segregation. How do
I translate that into reducing my chances of an audit?"
It is extremely important to engage with a firm that specializes in cost segregation.
Equally important Is the need for an independent engineering study to support the personal
property reclassifications, and a substantiating report following IRS guidelines.
To view a sample cost segregation report that exceeds IRS standards;
Call your CSS representative for a free estimate of savings and consultative session.