Can Tavella CPA Group prepare the cost-segregation analysis?
Depending on the property and available records, Tavella CPA Group may prepare a CPA-led, document-based cost-segregation tax analysis and the related depreciation and return work. Tavella CPA Group does not provide an engineering certification, property inspection, quantity takeoff, construction-cost estimate, appraisal, or valuation. When those elements are necessary for reliable support, the engagement must include or coordinate with an appropriately qualified independent provider. The signed engagement identifies the analysis, deliverables, assumptions, records, and professional responsibilities included.
What may Tavella CPA Group deliver for an accepted cost-segregation engagement?
The deliverable is the CPA tax work listed in the signed engagement, not an engineering certification. It may include a document-based tax-classification and cost-allocation schedule, review questions for an independent provider, cost-reconciliation or tax-classification comments, updated depreciation schedules, affected return forms, or a separately accepted projection, Section 481(a) calculation, or Form 3115 analysis. Nothing is included unless the written scope says it is.
What records are commonly needed for the tax review?
Common records include the purchase agreement and closing statement, construction or renovation cost detail, invoices, land allocation support, placed-in-service dates, prior returns and depreciation schedules, ownership records, an independent study and appendices when one exists, and information about use, improvements, dispositions, states, and filing deadlines. Sensitive documents are requested through the secure portal only after engagement setup.
Can cost segregation be considered after a property was placed in service?
Potentially. A later analysis or study can raise depreciation-correction, accounting-method, Section 481(a), and Form 3115 questions. The correct path depends on prior depreciation, tax years, property classifications, procedural rules, available support, and current guidance. An amended return or Form 3115 is not automatic and is separately scoped when review supports it.
Does cost segregation guarantee bonus depreciation or tax savings?
No. Classification does not make land or an entire building eligible for bonus depreciation, Section 179, or other accelerated depreciation, and eligibility depends on the asset, acquisition and placed-in-service dates, tax year, use, ownership, elections, and current law. Basis, passive-activity limits, loss limitations, state conformity, future sales, and recapture can change the practical result. No deduction, refund, or tax savings is guaranteed.
Why do future sales and state returns matter?
Accelerated depreciation can shift deductions between years and changes the asset detail carried into a later sale or disposition. Federal Sections 1245 and 1250, depreciation recapture, suspended losses, basis, and state conformity may affect later reporting. Each relevant state and tax year must be reviewed separately.
Is the IRS Cost Segregation Audit Technique Guide binding tax law?
No. The IRS's February 2025 Publication 5653 explains examination approaches and characteristics of studies, but it states that it is not an official pronouncement of law or the IRS's position and cannot be relied upon as such. Current statutes, regulations, cases, procedures, forms, instructions, and other applicable guidance control the tax analysis.
