| About the CSSI Company |
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CSSI is a professional engineering firm specifically focused to perform engineered cost segregation studies for commercial properties valued at $300,000 or greater. We are the Premier Engineering Company for cost segregation studies in America.
CSSI was founded by industrial engineer/economist, Jim Shreve, who designed the CSSI Study based upon the Cost Segregation Audit Technique Guidelines written by the IRS.
In 5 years, over 8,000 CSSI Studies have been completed.
Our CSSI Studies have been performed for commercial property owners in every state of the U.S. Our network of professional CSSI representatives located in each state in the U.S. can demonstrate and coordinate the application of cost segregation for commercial property owners. The CSSI representative brings the personal professional attention every commercial property owner and their CPA needs to assure the proper engineered cost segregation result according to the IRS tax rules.
Our objective is to facilitate maximum tax savings which improves our client's cash flow.
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| What is Cost Segregation? |
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Cost segregation is the IRS approved method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5, 7, or 15-year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. Thus your current taxable income will be greatly reduced and your cash flow will increase.
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A CSSI Study is an engineering analysis that reclassifies or segregates real estate components and improvements between real and personal property in order to accelerate the depreciation periods from 39 or 27.5 years to 15, 7, or 5 years.
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| Why haven't I heard of cost segregation? |
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Cost segregation was first applied and performed by major accounting firms with in-house cost segregation departments on the largest properties of their most significant clients. One study originally cost upwards of $100,000.
CSSI developed the methods and protocols to deliver this same service to commercial property owners at very affordable rates. This means you can take advantage of this tax savings that was once only enjoyed by the owners of exceptionally large properties.
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A CSSI Study is an engineering analysis that reclassifies or segregates real estate components and improvements between real and personal property in order to accelerate the depreciation periods from 39 or 27.5 years to 15, 7, or 5 years.
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| Does my property qualify? |
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Yes, if you:
1.) Purchased, constructed, or remodeled property after Jan. 1, 1986
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2.) Anticipate holding the property for at least a few years
and
3.) Are a for-profit organization
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| Can I benefit from a CSSI Study? |
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Yes. CSSI engineers perform cost segregation studies as an essential tax savings tool for commercial property owners. Let us provide the necessary data to your advisors to determine potential tax benefits.
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| When should a study be done? |
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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.
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| What information will be needed to complete a CSSI Study? |
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While each study differs, we generally request the following information, if available:
1.) A current tax schedule
2.) Building cost information
3.) Change orders
We can assist you in gathering the necessary data
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| How does a CSSI Study work? |
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Building costs are generally classified for federal income tax purposes into three categories; (1) Tangible Personal Property, (2) Land Improvements, and (3) Real Property. Each has a different recovery period and method under the Modified Accelerated Cost Recovery System (MACRS). Our qualified engineers with in-depth knowledge of construction methods, materials, and building components can perform a detailed analysis to properly identify the building components and improvements that will be reclassified to take advantage of accelerated depreciation.
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| Why should I perform a CSSI Study? |
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Without a CSSI Study your accountant will only be able to use straight line depreciation, 39 or 27.5 years. A CSSI Study provides your accountant with accurate information to establish 5, 7, 15, and 27.5 or 39-year depreciation schedules, which substantially increases tax savings in the earlier years of owning your property. |
| How long does a CSSI Study take? |
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A CSSI Study normally takes about 4 to 6 weeks from the time we receive all the appropriate documentation. |
| Will a CSSI Study trigger an audit? |
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No. A CSSI Study strictly adheres to the IRS Cost Segregation Audit Technique Guidelines.
If the CSSI Study comes into question, a principal or engineer from CSSI will attend the audit without any charge.
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| Can a CSSI Study apply to buildings not yet constructed? |
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No. However, for projects not yet constructed, CSSI can provide estimates on tax savings from your construction budgets. A CSSI Study will be delivered when construction is complete.
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| Why should I choose CSSI? |
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CSSI's engineers have the expertise in tax laws, cases, and ruling on cost segregation, along with real estate development and construction experience to maximize your tax savings. Only exceptionally large accounting firms have in-house engineers who can perform a cost segregation study at substantial fees. Our company will work with your advisors to help you take advantage of this extremely viable tax savings solution.
Click here for a free no obligation property analysis to illustrate your potential savings
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AICPA, Cost Segregation Applied
“A taxpayer can substantially increase cash flow by segregating property costs.”
“Cost segregation can provide real estate purchasers with tremendous tax benefits from accelerated depreciation deductions and easier write-offs when an asset becomes obsolete, broken or destroyed.”
– By Jay A. Soled, JD, LLM and Charles E. Falk, CPA, JD
AICPA, The Best of Both Worlds
“Selecting a firm that uses qualified professionals with years of significant, relevant experience can be an important differentiator in the quality of a cost segregation study.”
– By William Edward Allen III, CPA and Mary B. Foster, Esq.
A Practicing CPA
“A good relationship with an established, experienced cost segregation provider is important so that, if the IRS inquires about a cost segregation study three or more years down the line, the provider is willing and able to stand behind the work.”
President of a Community Bank in Chicago
“I view the services of Cost Segregation Services Inc. as important for our clients and important to our bank’s initiative.”
San Diego CPA Firm
“We appreciate the engineered cost segregation study by Cost Segregation Services, Inc. which gives optimum results for our clients while applying the IRS rules”
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