From Cost Segregation Report to Tax Return: Handoff Checklist

Delivery is the start of implementation

Receiving a report does not update a return. Record the final report version, property, cost periods and agreed basis. Have the preparer confirm that the component totals match the cost bridge and that prior depreciation history is available. Resolve provider questions before relying on the final schedules.

Confirm the filing procedure

The preparer determines whether current-year depreciation, a correction, an accounting-method change or another procedure fits the facts. If Form 3115 work is needed, assign it explicitly and confirm applicable filing requirements. The study fee should not be treated as including this work unless the engagement says so.

Keep federal and state schedules separate

Ask the preparer to evaluate state conformity and any additions, subtractions or separate basis schedules for the relevant state and year. A federal estimate does not establish the state benefit. Preserve the link between the study assets and both schedules if their treatments differ.

Ask for completion evidence

Retain the updated depreciation file, the preparer’s implementation confirmation and relevant filed-form records. Track unresolved items after filing and retain any corrected schedule with a reason for the change. The owner should know who handles future sale reporting and questions about the study methodology.

Download the working template

Blank CSV template for your own records. Open it in your spreadsheet application, add source references, and keep it with the engagement file.

Template columns: Implementation task; Report or return version; Responsible professional; Due date; Completion evidence; Open item.

Continue with your property decision