No.
Cost Segregation is the correct method of depreciating commercial real estate. If a study is done at the very beginning of a property being placed in service, the proper method of depreciation is now already in place and will continue forward until the building is fully depreciated or the owner sells the property.
For properties that have not had a Cost Segregation Study completed and have been utilizing traditional straight-line depreciation in years past, we prepare a necessary form for them to file with the IRS after the study is completed. This is called a Form 3115 which is an "Automatic Change in Accounting". This filing is already pre-approved by the IRS. Because we adhere to all IRS publications, you can be confident in the increased protection our studies will provide. We include a form 3115 (when applicable) with all of our studies to ensure it is done correctly.
We have successfully completed thousands of studies, and not one of our studies have triggered an IRS audit. We have clients that have had their business audited and therefore have had their Cost Segregation Studies pulled into the audit and scrutinized, but all of our studies have come back as "no change".
NCSS provides ongoing support of any IRS inquiry at no additional charge to you.
We provide free projections so you can determine how beneficial a Cost Seg Study would be in your particular tax situation.