Detailed Engineering Cost Segregation Studies
Basics of Full Detailed Engineering Cost Segregation Studies
At Maven Cost Segregation: Tax Advisors., our Full Detailed Engineering Cost Segregation Studies represent the most thorough and reliable approach to uncovering accelerated depreciation opportunities. This method is designed for commercial property owners, multifamily investors, self-storage operators, and portfolio managers who seek to maximize tax savings while ensuring full compliance with IRS standards.
Our studies are performed by an in-house team of certified engineers and CPAs, ensuring that every aspect of your property is evaluated with precision. From site inspections to the final report, each step is managed under strict oversight to deliver accurate results, robust documentation, and comprehensive audit support. Learn more about our cost segregation services.
Get StartedOur studies are performed by an in-house team of certified engineers and CPAs, ensuring that every aspect of your property is evaluated with precision. From site inspections to the final report, each step is managed under strict oversight to deliver accurate results, robust documentation, and comprehensive audit support. Learn more about our cost segregation services.
What Is a Full Detailed Engineering Cost Segregation Study?
A Full Detailed Engineering Cost Segregation Study involves analyzing and reclassifying your property’s components into shorter depreciation periods, such as 5-year, 7-year, and 15-year asset classes. These include items like appliances, decorative fixtures, parking lots, and landscaping that can be depreciated faster than the standard 27.5- or 39-year schedule.
At Maven Cost Segregation, this process is conducted with a high level of technical rigor:
At Maven Cost Segregation, this process is conducted with a high level of technical rigor:
Technical Rigor
Engineering Analysis:
We use detailed cost records and engineering principles to classify assets accurately according to IRS guidelines.
IRS Audit Support:
With comprehensive documentation and analysis, we stand by our studies and provide full support in the event of an audit.
Site Inspection:
Our in-house engineers visit the property to thoroughly inspect and document every component, ensuring no qualifying asset is overlooked. Learn how hands-on site inspections benefit property owners with our in-depth guide here.
This process ensures compliance with IRS guidelines and Revenue Procedure 2019-33, reducing the risk of audit challenges while maintaining a high standard of accuracy and transparency.
Compared to other approaches like modeling or sampling, a Full Detailed Engineering Study offers unparalleled accuracy by analyzing actual cost records and performing detailed site inspections. Here’s why it stands out:
Why Choose a Full Detailed Engineering Study?
Why Cost Segregation Matters in 1031 Transactions:
Precision:
A meticulous review of every property component ensures all qualifying assets are included in the depreciation schedule.
Comprehensive Documentation:
Fully itemized reports simplify tax filings and provide robust support in case of an IRS audit.
Enhanced Savings:
Greater precision means more depreciation deductions and improved cash flow.
Discover how a full detailed engineering approach for cost segregation can unlock significant savings for your property with this comprehensive article.
How It Works: Our 3-Step Process
We begin with an in-depth property review led by certified engineers:
On-Site Inspection:
Our team conducts a hands-on evaluation to document all qualifying components for accelerated depreciation.Component Documentation:
Assets such as parking lots, decorative fixtures, and landscaping are categorized into 5-, 7-, or 15-year depreciation schedules. Learn more about the depreciation process here.Our engineers and CPAs collaborate to prepare a comprehensive report:
Data Analysis:
Actual cost records or precise estimations are used to assign values to components.Asset Classification:
Components are aligned with IRS guidelines for accurate reclassification.Quality Review:
Every report undergoes meticulous CPA review to ensure compliance.We deliver a robust, audit-ready report and ensure actionable results:
IRS-Compliant Report:
Fully itemized, meeting all IRS standards.Collaboration with Your CPA:
Seamlessly integrate findings into your tax filing for maximum benefit.Audit Support:
Comprehensive documentation and expert representation in case of IRS inquiries.
Check out our guide to tax-saving strategies for real estate professionals for additional insights.
Expert Consultation with Sean Graham, CPA
At Maven Cost Segregation, every study is tailored to your needs. Sean Graham, our lead CPA and a recognized expert in cost segregation, personally consults with each client to assess their tax situation. Key topics Sean reviews include:
Offsetting W-2 income with cost segregation strategies.
Leveraging opportunity zones.
Exploring the short-term rental loophole.
Using Form 3115 to correct missed depreciation deductions retroactively.
Sean’s expertise ensures your tax strategy aligns with IRS standards while delivering maximum benefits. Learn more about the tax advantages of cost segregation.
Choosing Between Full Detailed and Condensed Detailed Engineering Studies
For properties valued over $1 million or with complex layouts, we recommend a Full Detailed Engineering Study to maximize benefits and ensure the most robust audit support. For smaller or simpler properties, a Condensed Engineering Study offers a cost-effective solution while still delivering tax savings.
- Full Detailed Studies:
Best for larger, more complex properties where precision is critical.
- Condensed Detailed Studies:
Ideal for smaller properties or portfolios with standardized layouts.
Find out how a condensed cost segregation study works for smaller investments.
| Aspect | Full Detailed Engineering Study | Condensed Detailed Engineering Study |
|---|---|---|
| Precision | Highest, with a physical breakdown of all components. | High, using advanced modeling for allocations. |
| Cost | Higher due to on-site inspections and analysis. | Lower, ideal for smaller properties. |
| Timeframe | Longer due to the in-depth process. | Faster turnaround with streamlined methods. |
| Audit Protection | Superior, with detailed and IRS-ready documentation. | Strong, though less granular than detailed studies. |
| Best For | Properties over $1 million or with complex layouts. | Properties under $1 million or with simpler layouts. |
At Maven Cost Segregation, we offer both Full Detailed Engineering Studies and Condensed Detailed Engineering Studies to fit the unique needs of property owners. Each approach is valuable depending on the property’s size and complexity.
Pricing Ranges for Condensed Engineering Studies
At Maven Cost Segregation, we believe in full transparency when it comes to pricing. Unlike companies that direct you to vague pricing pages, we provide clear, upfront ranges while acknowledging that every property is unique. Our pricing reflects the meticulous effort,
engineering expertise, and tax strategy guidance we bring to each project.
engineering expertise, and tax strategy guidance we bring to each project.
Our detailed engineering studies are designed for property owners who want the gold standard in cost segregation. Whether it’s a modest commercial property or a sprawling multi-unit development, we tailor our services to ensure maximum tax benefits. Below, you’ll find general pricing ranges based on property size and complexity.
Smaller Properties:
For detailed studies on properties such as office buildings, small multifamily rentals, or light industrial spaces, pricing typically ranges between $2,500 and $4,000. These studies include site visits, physical breakdowns of property components, and in-depth IRS-compliant reporting.
Get A Quote!Large or Complex Portfolio Properties
For larger investments like hotels, expansive apartment complexes, or industrial facilities, pricing starts at $5,000 and can extend to $10,000 or more, depending on the property’s size and intricacy. A 600-unit apartment complex or a state-of-the-art commercial center will naturally require additional time, precision, and resources.
Get A Quote!Why Maven Cost Segregation is Worth It
- 1. In-House Expertise:
Unlike firms that outsource, our team includes certified engineers and CPAs who conduct every study with precision and care.
- 2. Thorough IRS Compliance:
We adhere to every IRS guideline, ensuring our studies withstand scrutiny and provide unmatched audit protection.
- 3. Tailored Recommendations:
Before starting a study, we provide a free "Estimate of Benefits," allowing you to see potential tax savings upfront. This way, you can make an informed decision on whether a full detailed study is the right choice.
Our Commitment to Precision and Results
Whether you choose a detailed or condensed study, you’ll benefit from the expertise of our in-house engineers and CPAs. Every study is tailored to your specific property and reviewed for compliance, accuracy, and tax optimization. At Maven Cost Segregation, we help you make informed decisions, ensuring the approach you choose aligns perfectly with your investment strategy.