There are differences between providers and their studies. Unfortunately all too many do not understand the effect those differences can have in bottom-line value. Cost segregation is a generic term which simply describes the process of dividing complex systems with a known cost into its components and then correctly determining the previously unknown cost of each component. How deep those divisions go, the transparency of the methods used and the experience of the provider will yield different results. This is why it is critical to understand what an owner's goals and plans are for a property.

Take for example someone who has owned an apartment project for over 20 years and completed a major updating 5 years ago. The reality is that the owner has already received around 75% of the depreciation that was available. That means a typical cost segregation study would be 25% as valuable as one completed on a property acquired this year. Therefore the value of a cost segregation study might be marginal. However, the major update that was made five years ago occurred at a time when the tangible property regulations were different than they are today. With Safe Harbour's thorough understanding of the rules both today and historically, the owner will likely be able to benefit from reviewing those capitalized costs. We know that is probable, even likely, that 75% of the costs that were capitalized can be expensed retroactively. Bringing value is what we are all about.