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Updated almost 2 years ago, 02/02/2023

User Stats

40
Posts
22
Votes
Travis Reed
22
Votes |
40
Posts

Hey CPAs, Can I do my own cost segregation study?

Travis Reed
Posted

I am a practicing Texas Licensed Civil Engineer. I work at a consulting firm that does development work, utility work, drainage, paving, construction management, surveying, plating, etc. I estimate project costs on multi million dollar infrastructure jobs and have had to do life cycle component stuff for financial advisors and insurance companies for some of our clients. In my opinion, my education and experience would justify to the IRS that I am perfectly qualified to do cost segregation studies. Can I do my own? 

While on the subject, I own 5% of the consulting engineering firm. For this reason, I believe I qualify as a real-estate professional for my properties that I manage.  Does this sound reasonable? 

Thanks for the help. My intention is to take an upfront 20% or so bonus depreciation on the $500k commercial building I bought last year. Does this seem in line with what you guys are seeing on your cost segregation studies? I think I could justify more but do not want to stir the IRS beast. 

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