Unit of Property (UoP) designations are provided with every Capstan Cost Segregation Study. UoP aggregates the costs found in a cost segregation study into the Unit of Property designations as outlined in the IRS Tangible Property Regulations. The UoP designations are then used as a guide in performing Materiality tests once a project is deemed not to be a Betterment, Adaptation, or Restoration (BAR).
Capstan offers a UoP Upgrade to any Cost Segregation Study previously performed by our team. Adding a UoP Upgrade to a previously performed Cost Segregation Study allows property owners to get the best return on their investment. That’s because UoP designations provide guidance in determining whether future expenditures can be expensed or capitalized.
If a client has a cost segregation report produced by a third party, Capstan can upgrade the report as long as the 39-year assets are sufficiently detailed. If additional assets have been placed in service since the study was performed, Capstan’s ability to upgrade the report will be evaluated. In such a case, a site revisit and further cost segregation of new assets may be required.