For the person filing the return
Everything you need to file is in the report.
Each study ships with print-ready filing attachments and the advisory notes that matter. You stay in control of the return. We hand you clean, defensible work to attach to it.
In every study
The filing attachments, ready to use.
Form 3115 §481(a) statement
The catch-up statement for property placed in service in a prior year. It computes the §481(a) adjustment so you can claim missed depreciation on the current return.
Form 4562 line-item detail
Every asset class broken out the way Form 4562 wants it, so the depreciation lines drop straight onto the return.
Year-by-year depreciation schedule
The full schedule across the recovery period, plus the cumulative savings curve. Easy to hand a client or attach to the file.
Component allocation summary
The 5-year, 15-year, and real-property buckets with the supporting allocation logic, so the numbers are easy to defend.
Federal focus. These schedules are built for the federal return. State adjustments like conformity and decoupling vary by state. Check your client's state return for any state-specific depreciation changes. We flag the state-conformity issues we see in every study.
Advisory note to forward to whoever files
The §163(j) election that can undercut a study.
One election deserves a second look before you file. The real property trade or business election under §163(j)(7)(B) lets you skip the business-interest limit. But it is irrevocable, and it forces slower ADS depreciation on your real-property buckets. That can cut into the value of the study.
| Component | No election (GDS) | With election (ADS) | Bonus after election? |
|---|---|---|---|
| 5-year personal property | 5 years, 200% DB | 5 years (unchanged) | Yes, unaffected |
| 15-year land improvements | 15 years, 150% DB | 20 years ADS | No, ADS disallows bonus |
| Qualified improvement property | 15 years, bonus-eligible | 20 years ADS, no bonus | No |
| Nonresidential building | 39 years, straight-line | 40 years, straight-line | Not bonus-eligible either way |
| Residential rental building | 27.5 years, straight-line | 30 years, straight-line | Not bonus-eligible either way |
How to think about it
- Size the limit first. If the interest limit is small, the election may not be worth the slower depreciation.
- Compare the present value of deferred interest against the value lost to ADS on the real-property bucket. Model both at the client's rate.
- Remember it is irrevocable. The election applies to all property in that business, for every future year.
- The 5-year personal property in this study is unaffected. The election mainly slows the 15-year and real-property buckets.
Circular 230 §10.27 fee disclosure
We charge a flat fee. Never a contingent one.
Our fee for a cost segregation study is fixed and flat. It is not tied to the tax position taken, the size of the deduction, or the outcome of any IRS examination. This keeps the engagement squarely inside Treasury Circular 230 §10.27, which bars a contingent fee for preparing a return or claim. No part of our fee changes with the tax benefit your client realizes.
Want the toolkit for a specific property?
Send us the property and we will send back the filing attachments and a savings estimate.