A building is not one asset — or one cost base.
A facility usually reaches the register as one long-lived building, whether it was built last year or twenty years ago and never studied. Breaking it apart correctly is worth a great deal on the return. For a contractor it also moves cost, which is why we read the contract side before the allocation.
Reclassify an asset and you have moved a contract cost.
A cost segregation study reaches directly into the facilities that carry your government work. Shortening a life accelerates a deduction, and it also changes how that cost is measured and where it lands.
Run as a pure tax exercise, that is invisible until someone on the contract side finds it. We establish the contract-side consequence first, confirm the treatment holds on both readings, and then take the acceleration. The order protects the position that funds the company.
Firms that do this work well are not scarce. Firms that read the contract consequence before the deduction are.
Every dollar of project cost, allocated on engineering evidence.
The study reads your facility’s construction and component cost detail and allocates project cost among the three categories current law creates.
Personal property and land improvements on the 5-, 7-, and 15-year MACRS classes. Process-dedicated systems, site work, paving, landscaping, and utilities routinely sit inside a 39-year building line when they belong on a much shorter one, and they draw the permanent 100% first-year bonus deduction once they are identified.
Qualified Production Property: eligible production real property drawing an elective 100% first-year deduction under a new and temporary provision. The elections that capture the largest positions can be made only on the original return for the year, which makes timing part of the engineering.
Remaining real property on the 39-year life.
For facilities already on the books, the study computes the catch-up. Cumulative under-claimed depreciation is captured in the current year through an accounting-method change, not through amended returns.
One facility, one study, one report.
Each facility is scoped on its own construction and systems profile and receives its own study and its own report. Where the construction record will not carry the allocation on its own, the study includes a site inspection.
A Cost Segregation Study Report for each facility, as a PDF prepared for the named recipient: the engineering-based allocation reconciled to total project cost, each reclassified component identified with the authority it rests on, the first-year deduction and catch-up computations, the recapture picture, and the recommendations they trigger with the implementation pathway each requires.
You choose the delivery tier.
FactorTax delivers the analysis and the filing-ready documentation, built to withstand examination. Your tax provider implements it.
FactorTax delivers the study and implements it end to end, preparing and filing the accounting-method change and signing as practitioner of record under Treasury Circular 230.
Every engagement is a single flat fee, fixed in the engagement letter before work begins. No ranges, no hourly billing, and no fee that moves with the size of the result.