Putting a solid cost segregation strategy in place can yield significant benefits, including faster cost recovery using accelerated depreciation methods. This tactic has become even more valuable following the Tax Cuts and Jobs Act’s bonus depreciation opportunities and the CARES Act’s changes to net operating loss rules.
It’s not a simple process, however, particularly because of state conformity complexities and rules for various property types. Automation can help with both of these matters – the most successful cost segregation strategies are not built from spreadsheets. Further, since the IRS does not have established standards in this area, audits are a possibility to be prepared for.
Download this white paper for insights on eliminating pain points and standardizing workflows surrounding:
- Performing state and federal depreciation calculations
- Managing asset splits
- Anticipating revisions and adjustments
- Maintaining a defensive audit trail
- Reducing calculation errors