The report
Engineered study
Component-level detail, the methodology, the photographs and the reasoning behind each classification.
Engineering-Based Cost Segregation Studies
An engineered study breaks a commercial building into its components and puts each one in the recovery period the law assigns it, with the documentation to show why.
A building is not one asset.
Without a study, a commercial building is usually depreciated as one asset over 39 years, or 27.5 years for residential rental property. That puts the carpet, the parking lot and the data cabling on the same schedule as the structural frame.
The law already gives those components shorter lives. Somebody has to identify them, price them and document why each one belongs where it does. That is engineering work, and it is the whole study.
Engineered studies are the type that should be used. Why engineered studies matter in commercial real estate.
How an engineered study classifies a commercial buildingRepresentative components
5-year
Personal property
Decorative lighting, carpet and specialty flooring, millwork and casework, dedicated electrical and equipment connections, data and security cabling.
7-year
Property whose life follows the activity
Certain equipment and furnishings, and property whose recovery period is set by the business activity it serves.
15-year
Land improvements and QIP
Paving, curbs, sidewalks, site lighting, fencing, landscaping, signage and site drainage, plus qualified improvement property in nonresidential buildings.
27.5 or 39-year
The structure
The shell and its general building systems: what remains once everything above is identified, priced and documented.
Every asset class distributes differently. See the components by property type.
What every study includes
The schedule
Fixed asset schedule
The allocation by recovery period, ready for the return.
Look-backs
Form 3115, prepared
On a look-back study we prepare the narrative, the form, the calculations and the supporting schedules. Your CPA signs, files and adds the taxpayer information.
Sign-off
Head of Engineering
Every study is signed off by our Head of Engineering before it is delivered.
Defense
Lifetime audit defense
For the taxpayer and the property while under their ownership, included with every study.
Before you buy
Sample reports
Sample reports are available on request, so you can see the deliverable first.
Thorough, accurate, and Quality Assured
Commercial property is component-dense and site-work heavy. The study has to be built by people who know where each asset class hides its short-life property.
Estimates prepared by Engineering
Commercial estimates are prepared by Engineering and held to a deeper investigation than other firms.
A selective engineering bench
Our engineering training program is very selective for commercial projects, and the team has completed 900+ commercial property studies.
Every commercial property type
Engineering has completed studies for every commercial property type, from hotels to lumber mills.
Signed off at the top
Every study is signed off by our Head of Engineering.
How the study runs
Typical turnaround is 3 to 5 weeks, including the site tour, information collection and study creation, given good collaboration.
Engineering-prepared estimate
Send the property details. Engineering prepares the estimate, and you receive a written, fixed-fee proposal within 24 to 48 hours.
Info collection
We collect the documents the study is built from: closing statement, plans, pay applications, photos and prior returns, through a secure upload. NDAs are available for sensitive projects.
Site tour
Virtual or Onsite Tour options. The tour is where the components are identified and photographed, so the report rests on what is actually there.
Report and deliverable
The engineered report and fixed asset schedule, signed off by our Head of Engineering. On a look-back study, Form 3115 is prepared for your CPA to sign and file.
Engineered study questions
Still have a question? Ask Engineering.
What makes a study engineering-based?
It is built from the property itself: a virtual or onsite tour, the plans and cost records, and a component-by-component analysis of what was actually built. Each component is classified into its recovery period and the report documents the reasoning. Rule-of-thumb percentages and desktop models skip those steps, which is why they hold up less well when a study is questioned.
Who prepares the estimate, and who signs off on the study?
Commercial estimates are prepared by Engineering and held to a deeper investigation than other firms. Every study is signed off by our Head of Engineering before it is delivered.
What do you need from us?
A closing statement, plans, pay applications, photos and prior returns, as available. Documents come in through a secure upload, and NDAs are available for sensitive projects.
How long does a study take?
Typical turnaround is 3 to 5 weeks, including the site tour, information collection and study creation, given good collaboration.
What happens if the IRS asks about the study?
Every study includes lifetime audit defense for the taxpayer and the property while under their ownership. That covers responding to IRS information requests about the study at the agent and appeals level, answering for workpapers, photos and methodology questions, and correcting the report if the IRS finds an error on our side.
Get a Commercial Savings Estimate
Fixed-fee proposal in 24 to 48 hours.
- Prepared by Engineering
- Lifetime audit defense
- NDAs available
info@senecacostseg.com
1210 Jackson St SE, Suite 2, Albany, OR 97322
Request your estimate
Estimates are prepared by our Engineering team.
Request received
Engineering will review the property and send your written estimate and proposal within 24 to 48 hours.
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