When Should A Study Be Done?

It is best to have a study completed for the year the building or improvements are placed in service. 

However, IRS Revenue Procedures allow taxpayers to "catch up" on the depreciation that was not claimed from the first day the property was placed in service without amending prior years' tax returns. Furthermore, the IRS recently allowed for the "catch up" period all in the first year rather than over four years, when the Revenue Procedure 99-49 was first introduced. 

A cost segregation study can be performed on any property constructed, acquired or remodeled since Jan. 1, 1986.

Check Out More Frequently Asked Questions