FAQs

Got Questions? We Have the Answers

Cost segregation and R&D tax credits can seem complicated, but they don’t have to be. Whether you’re curious about eligibility, timelines, or potential savings, we’re here to make it simple. Browse our FAQs or contact us for guidance tailored to your property or business.

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1. What exactly is a cost segregation study?

A cost segregation study is an IRS-accepted method of accelerating depreciation by identifying and reclassifying components of a building into shorter depreciable lives. This creates significant upfront tax savings and increased cash flow

2. Is this Legal?

Yes, both cost segregation & R&D tax credits are both written directly into IRS code.

3. Who qualifies for cost segregation?

Any commercial property or income-producing residential property placed in service after 1987 may qualify. This applies whether you built, bought, expanded, or remodeled the property.

4. Will this trigger an audit?

Not when performed correctly. When a study follows IRS guidelines and is completed by qualified engineers and tax professionals, it is fully compliant and defensible. CSSI has performed almost 60,000 studies over 23 years. In fact, if you are audited for any reason and the study comes into question, CSSI will defend the audit at no cost

5. Why doesn’t my CPA handle this?

Most CPAs don’t have the engineering, construction-cost analysis, or IRS code specialization required for cost segregation. That’s why firms like ours exist — we partner with CPAs to complete the engineering-based study the IRS requires.

6. Do I need to amend my previous tax returns?

In most cases, no. The IRS allows you to “catch up” missed depreciation using a Form 3115 — without amending prior returns.

7. What type of businesses qualify for the R&D Tax Credit?

Any business that designs, improves, tests, or innovates processes, products, software, or systems may qualify — not just laboratories or tech firms. Industries like manufacturing, construction, engineering, fabrication, agriculture, architecture, and food/beverage often qualify without realizing it.

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