A clear, three-step process from property analysis to completed report. We handle the engineering so you can focus on investing.
Submit your property details through our free estimate form. We review the purchase price, property type, and basic details to determine whether a cost segregation study makes financial sense for your investment. Most residential properties above $150,000 in purchase price are strong candidates. We provide a preliminary estimate of potential tax savings before you commit.
Once you engage Stratum, we begin our component-level engineering analysis. You provide your closing statement (HUD-1 or CD), property appraisal or listing photos, and any relevant renovation documentation. Our engineering team identifies and classifies every building component according to IRS guidelines, including MACRS class life assignments per Revenue Procedure 87-56 and the IRS Cost Segregation Audit Techniques Guide.
Each component is individually categorized into the appropriate recovery period: 5-year personal property, 7-year personal property, 15-year land improvements, or 27.5-year real property. We document the methodology, component descriptions, and cost allocations for full IRS compliance.
Within 14 business days, you receive your completed cost segregation report. The report includes a detailed asset listing, depreciation schedules by recovery period, supporting photographs, engineering methodology, and all documentation required for IRS audit defense. We deliver the report directly to you and your CPA in a format that integrates with standard tax preparation software.
Your CPA or tax preparer uses the study to file the appropriate depreciation schedules with your tax return. For properties placed in service in prior years, we include Form 3115 guidance so your CPA can file a change in accounting method and claim all prior-year missed depreciation in a single tax year.
Your HUD-1 settlement statement or closing disclosure showing the purchase price breakdown and transaction details.
Interior and exterior photographs of the property. Listing photos from the purchase are typically sufficient for most studies.
If applicable, invoices and details for any renovations or improvements made to the property since purchase.
Basic information including property address, date placed in service, property type (STR or LTR), and your CPA contact.