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- Do I need special programs to use TaxSeg Express™?
- Do I need high speed internet access?
- What is the process for getting my report?
- Why aren't ceramic tile and wood flooring on the checklist?
- What if I can’t complete the report within 15 days?
- What if I have problems viewing or printing the reports (Checklist, Review, or Final)?
- What is your return policy?
- What do you do with the information I give you about myself or my property?
- What do I get for the price?
- How do I change my password?
- How is the Potential Tax Savings calculated?
- What is a reasonable percentage of a property’s purchase price that can be allocated to chattel property?
- Can I put multiple property addresses into one report?
- What is a Unit?
- What is a Unique Unit Type?
- Where do I get Property Cost?
- Where do I get the Property Value?
- My property was purchased some time ago. Can I still use Cost Segregation?
- What if the item I need is included on a checklist for another room?
- How are Replacement Costs determined?
- Does it matter on which checklist I include closet measurements?
- I can't find an exhaust fan by itself without a range hood.
- What is included in Concrete Paving?
- How are sprinkler systems measured?
- If appliances purchased with the property are not currently in use, but are in storage, are they included?
- Do you offer reports for commercial property?
- Who should perform the inventory and complete the report?
- Can I get a report for an apartment building?
- Why isn't ceramic tile flooring considered a chattel item?
- I purchased a property, made improvements and then refinanced. Which value do I use for Property Cost?
- Are items purchased after the original closing included on the checklist?
- Can I still use this report if I've reported personal property for this rental on a prior year's tax return?
- What is the difference between Number of Units and Number of Unique Unit Types?
- Does it matter which credit card I use to pay for the report?
Do I need special programs to use TaxSeg Express™?
You will need access to the internet, Internet Explorer 5.5 or higher and Adobe Acrobat Reader 6.0 or higher to view the Checklist and the Reports. No browsers other than Internet Explorer 5.5 or higher are supported.
To download a free copy of Adobe Acrobat Reader 6.0:
- Go to http://www.adobe.com/products/acrobat/readstep2.html
- Choose the appropriate language, platform and connection speed for your circumstance.
- Choose the appropriate download for your operating system.
Do I need high speed internet access?
High speed or broadband internet access is not required, but it is recommended to speed the process of entering data and retrieving your Cost Segregation Final Report.
What is the process for getting my report?
- Register for a free account at www.TaxSegExpress.com
- Enter the information about your property and your payment method.
- Login to your account to access the Chattels Checklist PDF. Print the entire checklist or just the rooms you need to inventory.
- Take the Chattels Checklist to your property and use it to record your inventory and measurements of chattel (or personal property) contained therein. It's a good idea to take pictures for your future reference.
- Login at www.TaxSegExpress.com and select the report from your Profile to work on. Enter the information from the Checklist using the Wizard.
- When finished entering all chattels from the Checklist, print the Cost Segregation Review Report and compare your entries for accuracy and completeness.
- Make any additions or deletions as needed on the Item Detail page and review again.
Note: Use the Wizard entry on the Item Detail page to add chattels. Use the Standard entry on the Item Detail page to delete or edit chattels.
- Once you are absolutely sure you have entered all chattels, then print the Cost Segregation Final Report. Remember, once you print the Final Report, you can NOT make changes.
Note: You must complete the entry process and print your Final Report within 15 days of your first entries.
Why aren't ceramic tile and wood flooring on the checklist?
Some items in a property may be depreciable, but are not considered chattel or personal property and are therefore excluded from the checklist on purpose. Items that are permanently affixed to the property are not considered depreciable chattel property such as ceramic tile or wood flooring.
In addition, some items that are considered chattel property otherwise, may not qualify based on where they are installed. For instance, according to the IRS, hardly anything in the bathroom is considered chattel property, which is why the bathroom checklist is limited.
The following items have been excluded from the Checklists by design:- Most items in the bathroom
- Ceramic tile flooring
- Wood flooring, unless it is a removable laminate
If the item isn’t one of the above and you still feel it should be included, please write us at support@marshallswift.com and we will research the item if it is appropriate to be included.
Our objective is to produce a report that will withstand an IRS audit, so not all personal property will qualify to be included in the report.
What if I can’t complete the report within 15 days?
At the end of 15 days, the Final Report will be locked in its then current state. If you have an emergency situation and you are unable to complete the report within 15 days, please write us and let us know. Examples of emergencies include:- Hospitalization
- Overseas travel
What if I have problems viewing or printing the reports (Checklist, Review, or Final)?
- Make sure you have Adobe Acrobat Reader 6.0 installed.
- Check that your printer is properly configured. Test by printing another unrelated PDF.
- Check your system for software designed to block pop-ups. Temporarily disable your pop-up blocker or enter icx.msbexpress.net as a trusted site.
What is your return policy?
If you have not logged in and printed the Chattels Checklist and no more than 15 days have passed, you may request a refund by writing us at csinquiry@marshallswift.com
What do you do with the information I give you about myself or my property?
We use the information you give us regarding your property to calculate the cost of and customize your Cost Segregation reports. We do not sell or share this information with anyone who is not associated with the production of your report.
For more information, please consult the Privacy Policy at www.TaxSegExpress.com/legal.asp
What do I get for the price?
When you purchase a report, you will receive three documents. One is a proprietary Chattels Checklist that contains a list of depreciable chattel property. The second is a Cost Segregation Review Report to ensure accuracy and completeness of your data entry, a third is the Cost Segregation Final report containing the substantiated values required by the IRS.
The Review Report contains the data you input from the Checklists. The purpose of this report is to check the accuracy of your inputs against the Checklist before completing the process. If you discover an error, go back to the Item Detail page to edit or delete. You can add missed items by the Standard Method on the Item Detail page or by using the Wizard. The Review Report contains the Category, Item, Quantity, Measure, Quality and the Condition for each item in each unit. Values do not appear in this report, but are assigned in the Final Report.
The Final Report contains the research and logical basis for cost segregations in rental real estate, a summary of the values associated with the property, detailed valuation estimates by item, summarized by unit and by asset class life.
How do I change my password?
- Login to www.TaxSegExpress.com with your username and password.
- The Change Password function is located on the bottom of your account Profile page.
How is the Potential Tax Savings calculated?
The potential tax savings are calculated by comparing the depreciation expense generated by TaxSeg Express valuations to the depreciation expense generated by valuing the whole building without chattels valued separately for the first year of depreciation. For purposes of the calculation, a straight line depreciation method and a 40% tax bracket are assumed.
What is a reasonable percentage of a property’s purchase price that can be allocated to chattel property?
While each property is unique, it is reasonable to assume that 6% of your purchase price including land can be allocated to chattels. In cases where you enter into the program more than 50% of the building cost in chattel property, you will receive a warning message. This is an uncommon situation and may be the result of an error.
Can I put multiple property addresses into one report?
No. The IRS requires that each unit within a property address be valued separately. Putting more than one property address in a report will make the report invalid.
What is a Unit?
A unit is any structure separated from another by exterior walls. In the case of a single family house, none of the walls are shared. In an apartment or multi-unit property, units will be separated by common walls.
What is a Unique Unit Type?
A unique unit type is any one or more units with the same floor plan and square footage. For example, two identical one-bedroom units would be one Unique Unit Type.
Where do I get Property Cost?
The property cost is the same as the property purchase price and can usually be found on the closing documents for the property.
Where do I get the Property Value?
The property value is the same as the property fair market value and is usually established by the property appraisal. If you do not have an appraisal for the property, a realtor may be able to assist you in determining the value or you may consult the county property assessment records.
My property was purchased some time ago. Can I still use Cost Segregation?
TaxSegExpress.com currently offers valuation data as far back as 2002. Under the IRS guidelines, one can make a current year catch up of depreciation expense. There is no statute of limitations because this is a change in accounting method and regulations provide for a correction in the year of change. For more details, consult your tax professional.
What if the item I need is included on a checklist for another room?
The checklists are provided as a convenience for inventory and as a guideline. If an item is not included on the checklist for a specific room, it may or may not be a problem. The checklists were designed to include the most common items based on the room description.
For example, you may have an exhaust fan in your kitchen. If you can't find the item on the Kitchen checklist, but you can see that it is included in the Hallway checklist, they you can still inventory the item as a chattel.
This is not the case with all items though because there are exceptions. Certain items such as bathroom items, ceramic or wood flooring are not included on any checklist because they are not considered chattel property. If you can't find cabinets on the Bathroom checklist, it's because that item is not depreciable in the bathroom.
How are Replacement Costs determined?
Replacement costs are determined by the geographic region, the property zip code and the Quality and Condition of the item. The cost includes allowable supplemental expenses such as delivery and installation.
Does it matter on which checklist I include closet measurements?
The checklists are offered as a guideline and the value of an item is not affected by the checklist on which an item is included. Closet measurements may be included on the Hallway/Other Closet checklist or the Bedroom checklist, whichever is easier for you to use.
I can't find an exhaust fan by itself without a range hood.
An exhaust fan alone, separate from a hood can be found in the Utilities/Electrical Category on the Item Detail page within the program.
What is included in Concrete Paving?
Concrete paving could include sidewalks, walkways, driveways and slabs for a shed or garbage can.
How are sprinkler systems measured?
The entire area meant to be covered by the sprinkler system for a yard, lawn or garden area should be included in the sprinkler system measurement.
If appliances purchased with the property are not currently in use, but are in storage, are they included?
All items included with the original purchase of the property should be included in your inventory and measurement effort; however, notify your tax preparer of any items currently in storage as this may affect deductibility in the current period.
Do you offer reports for commercial property?
Our service does not offer commercial property reports at this time.
Who should perform the inventory and complete the report?
The property owner will have knowledge of and access to the property and is therefore probably be the most qualified to complete the inventory and data entry. It may be helpful to have assistance while taking measurements, but otherwise, no special assistance is required.
Can I get a report for an apartment building?
TaxSeg Express offers reports for 1 to 10 units, so that includes single family houses and small multi-family buildings, up to 10 units per property address.
Why isn't ceramic tile flooring considered a chattel item?
Ceramic tile flooring is not considered chattel property and is therefore not included on any Checklist. Wood flooring is another example of a non-chattel item. Items inside the building structure that cannot be removed without causing damage are not considered chattel. Since ceramic tile is installed using a cement product, removal would cause damage.
I purchased a property, made improvements and then refinanced. Which value do I use for Property Cost?
The appropriate value for Property Cost is the original purchase price and not the refinanced value.
Are items purchased after the original closing included on the checklist?
Items purchased after the original closing are accounted for and depreciated separately in the year they are purchased and are NOT included in the checklist or cost segregation. This would include scenarios where:
- The property was purchased new and many items such as window treatments, appliances, landscaping, pool, etc were added after closing,
- Major renovations or rehab was completed after closing. In this case, do not include on the checklist items that have been replaced since the original closing. The assumption here is that if an item (for example, carpet or stove) required replacement, it had little or no value when purchased with the property.
Can I still use this report if I've reported personal property for this rental on a prior year's tax return?
Prices start at for a single unit, such as a single family house. Add $60 for each additional unit up to 10 total units. A duplex counts as two units, a four-plex counts as four units, etc. Each property address is an individual report.
- If you have specifically identified each item with a value on your tax returns (refrigerator $400, stove $350, etc), then the reported values can not change for these items. However, you will likely still benefit from a report since you may identify additional items that were not segregated on a prior year's tax return. These would be added to the current year return and the building value reduced accordingly.
- If your tax return used a 'lump' amount (personal property of $2700), then you can run the report and use it as substantiation for the original amount and add specific property and amounts over the initial $2700 to get the remaining depreciation. These would be added to the current year return and the building value reduced accordingly.
** Keep in mind; if the rental property has been reported on a prior return, you are required to file a 'change of accounting method.' This notifies the IRS that you have made changes to the depreciation method used previously and allows you to take additional depreciation expense in the current year, since you can take accelerated depreciation for prior years all at once. Your tax preparer will be able to prepare this form. Please contact your tax advisor if you have more detailed questions about use of the report for your specific situation.
What is the difference between Number of Units and Number of Unique Unit Types?
The Number of Units is the total number of rental units at this property address while the Number of Unique Unit Types is the number of like units at this property address.
Example: If a property located at 1234 Main St has five rental units, but two of those units are two bedroom units and the remaining three units are one bedroom units, you may enter Number of Units = 5 and the Number of Unique Unit Types = 2 (some two bedroom, some one bedroom)
Keep in mind the unique unit types should be of similar quality and condition, with the same floor plan. This option can speed your data entry, by simply multiplying the number of items in each unit by the number of this unit type. If a few items are of different quality or condition, you may skip those items during the wizard entry and enter them separately in the edit screen to properly reflect the differences. If most items are of different quality or condition, it will be better to enter each unit (rather than type) separately.
Does it matter which credit card I use to pay for the report?
If you have a credit card reserved for expenses related to your rental properties, use the card that relates to that property. This will assist your tax preparer with capturing all expenses related to the property. If you do not have a separate card for rental property expenses, use your personal card and be sure to note the expense for year end tax preparation. Your tax preparer will thank you for it!
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