CCH's new book, Practical Guide to Cost Segregation (Second Edition), not only explains how a cost segregation study is performed, but also outlines the steps needed to practice in this discipline and how to integrate and expand the broad practice of the firm taking it on. Comprehensive discussion is supported by practical illustrative examples. The book also explains how to sell and price cost segregation studies and analysis as a meaningful service to a firm's clients.

Established standards for acceptable cost segregation studies require:

• On-site inspection of the facility to determine the property's character; examination of the processes and functions that the property is intended to serve; and identification of components the consultant considers relevant to cost segregation.
• Detailed qualitative take-off of all the facility's materials gleaned from a complete set of 'as built' building plans and specifications.
• Computation of in-place costs of each property item through application of unit costs against quantities of materials and necessary labor indicated.
• Listing of facility components by contractor trade, subcontract, or specific purchase order.
• Distribution of the facility's actual total construction cost to its components, based on the relative reconstructed costs of each component.
• Allocation of costs of architectural design, engineering and miscellaneous capitalized costs to each component.

This insightful new Guide covers these and other critical details in straightforward, clear and concise language that both novices and veteran practitioners will appreciate.

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