COST SEGREGATION STUDY (CSS)

CONNOR provides in-depth Cost Segregation Studies for Multifamily or Commercial Owners/Taxpayers.

Substantially increase cash flow by segregating property costs. Cost Segregation analyses break down construction and acquisition costs and allocates them to specific categories:

Tangible Personal Property

Land Improvements

Real Property

Accelerated Depreciation

Savings are realized by accelerated depreciation of property when it is reclassified from a long life to shorter life depreciation categories. In a Cost Segregation Study, certain costs formerly classified as subject to 39-year depreciable life, can be reclassified as a 5, 7, or 15-year rate of depreciation.

The CONNOR Engineering Based Study

The CONNOR “engineering based” study allows a building owner to depreciate a new or existing structure in the shortest period of time permissible under current tax laws. Real property (under Code sec. 1250) and personal property (under Code sec. 1245) identified by CONNOR, provides the CPA the necessary information and detailed supporting documentation needed to meet strict IRS regulations and requirements for audit defense. Th e IRS prefers that an engineering-based cost segregation be performed in order to provide maximum deprecation benefits.

Why Use CONNOR?

Why use CONNOR? In the IRS Cost Segregation Audit Techniques Guide (ATG), chapter 4, the prime attribute of a high-quality Cost Segregation Study is “preparation by an individual with expertise and experience.” The Audit Techniques Guide adds: “Preparation of Cost Segregation Studies requires knowledge of both the construction process and the tax law involving property classifications for depreciation purposes.” In general, a study by a CONNOR construction assessor is more reliable than one conducted by someone with no engineering or construction background. Experience in cost estimating and allocation, are other important criteria.

Expense the Study Cost

In addition to the owner’s increase in cash fl ow, the taxpayer can expense the cost of the study as a business expense under IRS section 162. CONNOR will work with your accountant to provide the documentation necessary to comply with IRS regulations.

Construction Draw Review

CONNOR will act as your on-site representative to ensure that requests for payment during construction correlate with work performed. CONNOR will attend scheduled draw review meetings, and perform on-site inspections of work completed and claimed inventories. Additionally, CONNOR will evaluate the quality of the workmanship, compare work to plans and specifications and review change order requests.

Pre-Construction Draw Review

CONNOR will review the construction documentation and cost estimates to determine whether the construction project has adequate cost allocations. CONNOR staff will work with the architect and design team to analyze the cost projections for your project.

Environmental Services

CONNOR’s environmental services come from a thorough understanding of compliance, years of experience, and from listening to the needs of real-estate professionals.

Aerial Services

Increase safety and efficiency with our aerial services. Industrial drone inspections, disaster recovery programs, and marketing video production.

Moisture Infiltration Services

CONNOR offers consulting services that identify building conditions that may facilitate moisture infiltration, and help implement a Moisture Management Plan (MMP).