Cost Segregation and the IRS

IRS logoCost segregation and the IRS are likened to your hand fitting into your glove…snugly.

Cost segregation actually came about as a result of Hospital Corporation of America suing the IRS…and winning!  The Supreme Court of the United States heard arguments from opposing counsel and ruled that there are building components qualifying for shorter depreciation periods…5-years, 7-years and 15-years. This is simple mathematics. Time-value of money says that a dollar is worth more today than it is tomorrow.

Segregation Holding is a forensic engineering firm that applies all of the Internal Revenue Code to the advantage of the commercial property owner. Specifically, we use IRC § 481(a), the “catch-up” provision. This little section of the tax code allows us to give any commercial property owner a windfall tax refund. Without amending a single tax return, we can go back to January 1, 1987 and get your overpaid taxes paid to you in the current tax year. The IRS grants what is called “automatic consent.” For you, the taxpaying property owner, it means the IRS gives you all of those overpaid taxes simply by filing Form 3115. Segregation Holding provides that form as part of our deliverable at no additional charge.

So, if you own or lease commercial real estate of any kind, we can help. Our team of forensic engineers are highly trained in building componentization and applying the tax code to those components.

Feel free to contact us today through our website at or you can request a free estimate of benefits by completing our client questionnaire at

This entry was posted in §1245, §1250, Accelerated Depreciation, Accelerates Depreciation, Amarillo Cost Segregation, American Society of Cost Segregation Professionals, ASCSP, Austin Cost Segregation, Birmingham Cost Segregation, Commercial Real Estate, Cost Segregation, CPA, Dallas Cost Segregation, Del Rio Cost Segregation, Denver Cost Segregation, Federal Income Tax, Franklin Cost Segregation, Houston Cost Segregation, Income Tax, Income Taxes, LA Cost Segregation, Lubbock Cost Segregation, Nashville Cost Segregation, New York Cost Segregation, San Angelo Cost Segregation, San Antonio Commercial Real Estate, San Antonio Cost Segregation, Seattle Cost Segregation, Tangible Personal Property. Bookmark the permalink.