09/07/2026
The IRS is getting smarter.
As technology and AI become more integrated into tax administration, it’s becoming easier to identify returns with unusual deductions, large depreciation adjustments, and positions that stand out from the norm.
That doesn’t mean you should be afraid to take a deduction you’re entitled to.
It means documentation matters more than ever.
This is especially true with cost segregation.
A quality cost segregation study should not simply give you a big deduction. It should clearly document:
• How the property was analyzed
• Why each asset was classified the way it was
• The methodology used to determine costs
• The supporting engineering and tax authority
• The records needed to defend the position if questions ever come up
At Cost Seg Capital, we don’t build studies around the question:
“How big of a deduction can we get?”
We build them around:
“Can we defend every dollar?”
When the IRS has better tools to identify unusual tax positions, the difference between an aggressive number and a defensible study becomes even more important.