Is a Cost Segregation Study itself tax deductible?

[Bjorn Roll]

I haven't been able to find out if the cost of the study itself, which can cost thousands of dollars, is tax deductible. If it is deductible, can the whole cost be deducted the year it is done? Thanks in advance! (The keywords for searching for my answer are the same keywords for general information about cost seg studies!)

[Michael Plaks]

@Bjorn Roll

In my opinion - yes, fully deductible in the year that you paid for it.

The only situation when I can see a potential debate whether it should be capitalized is when the cost seg study is done during the acquisition process.