Implementing your TPTM Cost Segregation Study

Step-by-Step Guide to Implementing Your TPTM Cost Segregation Study on Your Tax Return 

Congratulations on completing your cost segregation study with TPTM! Now, let’s make sure you benefit from your study by properly applying the findings to your tax return. Here’s how to proceed, whether you’re new to this or you’ve handled properties before.

Step-by-Step Instructions:

1. Understand Your Depreciation Schedule:

• • Review the results from your TPTM cost segregation study. It will include new depreciation percentages for various property components typically classified under shorter recovery periods (e.g., 5-year and 15-year property).

2. Update Your Depreciation Schedule:

• • If you acquired the property in the current tax year, you can directly update your depreciation schedule with the new percentages from the study. This will reflect on your upcoming tax return.

3. Filing Form 3115 for Previous Years:

• • If the property was purchased in a previous year, and you’re now implementing the cost segregation study, you’ll need to file Form 3115, Application for Change in Accounting Method.
  • This IRS form is necessary to adjust your depreciation schedule retroactively. It allows you to apply the new depreciation rates from the time you purchased the property.

4. Why Choose TPTM for Form 3115:

• • Filing Form 3115 can be complex and, if not done correctly, might raise red flags with the IRS. As tax method experts, TPTM prepares thousands of these forms every year and can ensure that yours is filled out correctly, minimizing the risk of an audit.

5. Consult Your CPA:

• • While TPTM can handle the specifics of Form 3115, it’s always a good idea to consult with your CPA or tax advisor. They can help ensure that every aspect of your tax situation is considered and that you’re maximizing your tax benefits.

By following these steps, you can effectively apply the cost segregation study to your tax filings, ensuring you receive the maximum possible tax deductions. Remember, each property and tax situation is unique, so personalized advice from your CPA, in conjunction with TPTM’s expertise, is the best way to ensure accuracy and compliance.

This practical approach will help you navigate the complexities of tax filings after a cost segregation study, enabling you to benefit financially while staying compliant with IRS regulations.