Sample Report

Here's exactly what you get

Every study we deliver is a complete, professional report your CPA can file immediately. Walk through each section below to see the level of detail we provide.

1

Cover Page & Executive Summary

Your report opens with property details, the engagement scope, and a high-level summary of findings — total savings identified, depreciable basis, percentage reclassified, and the bottom-line impact on your income taxes. Your CPA sees the full picture in 30 seconds.

Cost Segregation Study

123 Oak Street, Austin, TX 78704

Single-Family Rental · Placed in service 03/2024

Year 1 Savings

$38,420

Reclassified

$103,838

2

Asset Classification Schedule

The core of the study. Every reclassified component is listed with its MACRS life, cost, and depreciation method. Assets are grouped by class — 5-year personal property, 7-year property, 15-year land improvements — with subtotals for each. This is the schedule your CPA enters into your tax return.

ComponentLifeCost

5-Year Property (§1245)

Carpet & pad5$8,200
Window treatments5$3,400
Kitchen appliances5$6,800
Decorative lighting5$2,450
5-Year Subtotal$20,850

...continues for 7-year and 15-year classes

3

Cost Reconciliation

This is the section IRS examiners look at first. It proves that every dollar of your depreciable basis has been accounted for — reclassified assets plus remaining 27.5 or 39-year property equals your total basis exactly. No gaps, no discrepancies, no audit exposure.

Purchase price$500,000
Less: land value($87,500)
Depreciable basis$412,500
5-year property$20,850
7-year property$9,488
15-year property$73,500
Remaining 27.5-year$308,662
Total (must equal basis)$412,500 ✓
4

Depreciation Comparison

A side-by-side comparison showing your depreciation deductions with and without cost segregation over 10 years. This makes the value of the study immediately clear — especially in Year 1 when bonus depreciation applies to all reclassified assets.

YearWithoutWith StudyBenefit
1$15,000$118,838$103,838
2$15,000$11,224
3$15,000$10,876

...continues through year 10

5

Legal Framework & Citations

Every classification in your report is backed by specific IRS code sections, Treasury Regulations, and Revenue Procedures. If an auditor ever asks 'why is this carpet classified as 5-year property?' — the answer is documented, with the legal citation.

Regulatory Basis

IRC §168(e)(3)(B)

5-year property includes any IRC §1245 personal property with a class life of 4 years or more but less than 10 years.

Hospital Corp. of America v. Commissioner

Establishes that items permanently attached but serving a function specific to the business activity are §1245 personal property.

Rev. Proc. 87-56

Establishes class lives and recovery periods for tangible depreciable assets under MACRS.

6

Engineer Certification & Verification

The final page of your report contains the engineer's certification, signature, and license details. It also includes a unique verification code — your CPA or an IRS examiner can enter this code on our website to independently verify the report's authenticity.

Engineer Certification

I certify that this cost segregation study was prepared under my direct supervision in accordance with all applicable IRS guidelines, including the Cost Segregation Audit Techniques Guide.

John M. Carter

Specialized Tax Engineer · TX #98452

Verification Code

CSA-2025-X7K9M

Built for your CPA

We designed the report format based on what CPAs actually need to file. No ambiguity, no guesswork, no back-and-forth.

📊Clear depreciation schedules they can enter directly into tax software
🔢Cost reconciliation that proves basis accuracy — auditors check this first
📋Section 481(a) calculation included for lookback studies
🗺️State conformity notes so they know which deductions apply at state level
🔐Unique verification code for independent authentication

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