When should a study be done?
It is best to have a study completed for the year the building or improvements are placed in service. However, IRS Revenue Procedures allow taxpayers to "catch-up" on the depreciation that was not claimed from the first day the property was placed in service, without amending prior year's tax returns. Furthermore, the IRS recently allowed for the "catch-up" period all in the first year rather than in four years, when the Revenue Procedure 99-49 was first introduced. A cost segregation study can be performed on any property constructed, acquired, or remodeled since January 1, 1986.
