Our Approach
Depreciation Cost Method and Engineering Method for Cost Segregation
O’Connor Cost Segregation division employs an engineering-driven approach, aligning with the IRS’s preferred methodology. To determine whether a study would be beneficial for your circumstances, our specialists will work closely with you to answer any questions you may have about cost segregation depreciation. Offering an initial or preliminary assessment of possible benefits is an essential part of this procedure.
Free, No Risk Preliminary Analysis
The O’Connor team offers a complimentary, no-obligation preliminary analysis to estimate potential savings for your asset, using insights from past studies on similar properties
The O’Connor team collaborates closely with you and your CPA or financial/tax manager to gather relevant data and documentation on the subject property.
O’Connor Cost Segregation
These results will provide a precise cost estimate, enabling you to evaluate the potential savings in relation to the study’s cost before deciding whether to proceed.
The O’Connor team collaborates closely with you and your CPA or financial/tax manager, after deciding to move forward, to gather relevant data and documentation on the subject property. An appraiser then conducts a thorough inspection, identifying qualifying assets, assessing their value, and categorizing them according to their appropriate depreciation lifespan, following IRS guidelines and Federal Tax Court rulings.
Final Report
Afterwards, a final report is produced that details the cost allocations for each classification in great detail:
Five, seven, and/or 15 years classifications
Along with the 39 or 27.7 years classifications
The IRS Tangible Property Regulations from 2014 outline nine “units of property” that make up the latter.