Soar to Success March 2017

According to the IRS’s audit technique guide,

this method is the most methodical and reliable

approach but it’s not the only approach.

The IRS includes a list of the most common

approaches utilized for cost segregation studies in

their audit technique guide. This guide is used by

IRS auditors in the case of an examination.

So what about the purchase of an existing older

building? In this case, cost and construction

information may or may not be readily available.

When construction cost information is not available,

it has to be reconstructed using the construction

cost data, methods, and techniques normally used

for property appraisals.

The reconstructed cost is then adjusted for the

current physical condition of the property at the

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the actual amount paid by the taxpayer for the

property.

I hope you found this information helpful. If

you have questions about this or other tax and

accounting topics,

or visit my

website at

Tina L. Moe, C.P.A., CGMA, formed A.C.T. Services in 2002, and began building

her business. Her practice has grown to a clientele more than 1,200 clients and a

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the business owner herself.

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and the Indiana CPA Society.

Contact her at:

and on

Watch Tina’s video series

SOAR TO SUCCESS

ARCH

2017

Core Business Strategies