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Smith Tax Co.
Cost segregation
35282 Timber Ridge Rd
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Smith Tax Co.
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Engineered review · IRS-aligned
Cost Segregation Study · Tax Year 2025

35282 Timber Ridge Rd

Prepared for
Placed in service
Tax year
Report ID
Section 01

Executive summary

Estimated year-one deduction
USD
Total basis
Land allocation
Depreciable basis
Short-life reclass
Without cost seg
Straight-line, 27.5-yr, partial year one
With this study
Deduction ledger
Section 02

How the asset depreciates

Disposition & replacement
The remodel, in numbers

A remodel does two things at once. The remaining tax basis of the components removed is written off as a partial asset disposition (Treas. Reg. 1.168(i)-8). The new improvements are then capitalized and depreciated, with short-life components taking 60% bonus in year one. Both land on the same return.

Remodeled area Assigned value Replacement New total
Lookback §481(a): not applicable. Lookback applies when a property was placed in service in a prior tax year and depreciation was never accelerated. This property was placed in service in the current year (2025), so there is no catch-up to claim. On a lookback study, that catch-up would lead the report.
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Pages 01 and 02 show what the study found and where the benefit comes from. Sign and pay the final balance to unlock the complete component detail, verified sources, methodology, the engineered review pass, and your downloadable Form 4562 and PDF report.

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Section 03

Component allocation

$246,079 of short-life property. The map shows where it lives across the property; the rollup below organizes it by recovery period, then by room, then down to each component and its verified source.

Allocation rollup

Year classification, divided by room, divided by component. Select a recovery period, then a room, to roll down to each line item.

Section 04

Verified sources

Every figure in this study traces to a primary source. This is the provenance behind the engineered review: what we relied on, what it established, and how we confirmed it.

SourceWhat it verifiedHowStatus
Section 05

Photographic verification

Client photos cross-referenced against component allocations. Each asset is tied to its MACRS classification and the permit or invoice that supports it.

Remodel, before and after

The remodel scope, documented. These photos support the disposition and replacement detailed in Section 02.

Section 06

IRS-aligned methodology

Component allocations follow the IRS Cost Segregation Audit Techniques Guide and MACRS recovery periods. Every assumption traces to a publicly cited authority.

AuthorityHow it applies to this study
Section 07

Engineered review pass

Every study runs through the same four-stage engineered review before release: produced by the cost segregation engine, independently re-computed, and cross-checked against IRS authorities and public records.

Engineered review pass
All 4 stages passed. Cleared for delivery.
Run ID
Hash 0x9F4E…7AC2
Sealed 2025-05-19 09:42 UTC
AI engineering review

An AI engineer modeled on licensed P.E. methods, paired with an IRS audit agent, reviews and verifies every study so the calculations are defensible and meet tax-law standards.

Independent re-computation

Allocations re-run by a second model and reconciled. This study landed within 1.4% variance.

IRS-authority cross-check

Each component mapped to the IRS ATG, Rev. Proc. 87-56, and MACRS class lives.

Audit trail retained

Every source document and the full run log are retained for the audit-defense window.

About this review. Component allocations are cross-validated against IRS authorities, assessor records, and the client's source documents during the preparation workflow. Smith Tax Co. retains sole professional responsibility for the tax positions reported on the return, reviews the underlying support, and signs the return as the paid preparer. The software facilitates substantiation and calculation; it does not replace the firm's professional judgment or filing responsibility.