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The following is a highlight of a cost segregation study for a selected property type
conducted by the CSA Team of Engineers. The subject property was a Newly
Constructed and place in service two years previous. It is a Multi-Story / Office
Building, approximately 10,000 square feet and located on a 1.8 acre site.
SUMMARY OF BENEFITS
In performing our study, we reviewed and analyzed the project information supplied by
the client to determine the cost basis of the building, land improvements, and personal
property related assets. Our review and analysis included, when available, the purchase
price agreements, real estate appraisals, historical project construction drawings, project
construction cost information, project owner’s information, and nationally accepted cost
estimating manuals such as the Marshall & Swift Valuation Service and R.S. Means
Company Construction Cost Data, in order to identify, and reclassify those specific
assets that qualify for federal and state income tax depreciation purposes. A tour of the
facilities was conducted to further identify and quantify qualifying assets.
After we examined the additional cost detail available and our cost estimates, we
prepared a detailed listing of building related assets. Once we developed our detailed
listing, we confirmed our findings with the client personnel that the project cost
breakdown reconciled with the total project costs as presented in their general ledger
and fixed asset accounting records.
The last step was to classify each asset as real property, land improvement, and/or
First Year Add’l Depreciation
First Year Deferred Tax Benefit
Five Year Add’l D