General Questions

What does CSS Resources specialize in?

CSS Resources provides technical consulting support for cost segregation studies, R&D tax credits, and land nutrient deductions. Our work emphasizes IRS-accepted methodologies, conservative analysis, and audit-ready documentation. We frequently operate as subcontracted technical support for CPAs and tax advisors.

→ Learn more about our approach on the Cost Segregation, R&D Tax Credits, and Land Nutrient (§180) service pages.

Do you provide tax or legal advice?

No. We provide analytical and technical support designed to assist taxpayers and their advisors. Final tax positions, elections, and filings are determined by the taxpayer and their CPA or tax advisor.

What is a feasibility review and why is it required?

A feasibility review is a preliminary evaluation to determine whether a full study or analysis is economically justified and technically supportable. Not all projects qualify, and feasibility screening helps avoid unnecessary cost and audit exposure.

→ Start with the Feasibility Intake Form

Do you work directly with CPAs and accounting firms?

Yes. Many engagements are performed on a subcontract basis for CPAs. Our deliverables are structured to integrate cleanly into tax filings and advisor workflows.

Cost Segregation FAQs (IRC §§167 & 168)

What is cost segregation?

Cost segregation is an engineering-based tax analysis that identifies building components eligible for accelerated depreciation under MACRS by reclassifying qualifying assets into shorter recovery periods.

→ See the full explanation on the Cost Segregation Services Page

What makes a cost segregation study IRS-defensible? (Click For Details)

Defensibility depends on engineering-based analysis, proper asset classification, reliance on physical facts, documentation quality, and conservative treatment of ambiguous components. Percentage-based or rule-of-thumb studies carry higher audit risk and are not performed by our firm.

Does cost segregation increase audit risk?

Cost segregation itself does not inherently increase audit risk. Risk increases when studies rely on aggressive classifications, unsupported estimates, or weak documentation. Our methodology is designed to mitigate these risks.

Can cost segregation be performed on older properties?

Yes, in certain cases. Properties placed in service in prior years may still benefit, subject to IRS rules regarding depreciation methods and accounting changes. A feasibility review is required.

Is cost segregation appropriate for residential or small properties?

It depends. Property type, basis, placed-in-service date, and ownership horizon all affect feasibility. Smaller properties often do not justify a full study, which is why feasibility screening is critical.

R&D Tax Credit FAQs (IRC §41)

What qualifies as research for the R&D tax credit?

Qualifying research must satisfy all four elements of the IRC §41 Four-Part Test: permitted purpose, technological in nature, elimination of uncertainty, and process of experimentation.

→ Detailed methodology is available on the R&D Tax Credit Services Page

Does my business need to be in technology or manufacturing to qualify?

No. Eligibility is based on activities performed, not industry labels. Businesses in construction, software, engineering, manufacturing, and process improvement may qualify.

What expenses qualify as Qualified Research Expenses (QREs)? (Click For Details)

QREs may include qualifying wages, certain contractor expenses (subject to statutory limitations), and supplies used in qualified research. Overhead, sales, and routine operational costs are excluded unless clearly supported.

How do you handle employee time allocation?

Time allocation is evaluated based on roles, responsibilities, interviews, and available documentation. We do not assume full qualification without evidence.

Is the R&D tax credit high audit risk?

The R&D credit is an IRS examination focus area. Claims supported by weak technical narratives or inflated expenses carry higher risk. Our approach prioritizes conservative expense identification and audit-ready documentation.

Land Nutrient Deduction FAQs (IRC §180)

What is the IRC §180 land nutrient deduction?

IRC §180 allows certain soil and land preparation costs incurred in farming operations to be deducted rather than capitalized, provided they meet statutory and factual requirements.

→ Learn more on the Land Nutrient (§180) Services Page

What types of costs may qualify under §180? (Click For Details)

Potentially qualifying costs include soil conditioning, nutrient application, and land preparation directly related to crop production. Each cost must be evaluated individually.

What costs do not qualify under §180?

Permanent land improvements, drainage systems, irrigation infrastructure, and costs lacking agronomic purpose or documentation are generally not deductible under §180.

How do you distinguish deductible costs from capital improvements?

We review invoices, descriptions, and supporting documentation to determine whether costs are operational or capital in nature. Ambiguous items are treated conservatively or flagged for advisor review.

Is §180 commonly reviewed by the IRS?

While §180 is less visible than some other incentives, improper classification can be challenged during broader examinations. Documentation and conservative treatment are essential.

Process, Risk, and Expectations

Do you guarantee tax savings or credits?

No. We do not guarantee outcomes. All conclusions are based on facts, documentation, and applicable guidance. Not all projects qualify.

How long does a typical engagement take?

Timelines vary by service and data availability. Feasibility reviews are typically completed quickly, while full studies depend on documentation and project complexity.

What happens if documentation is incomplete?

Documentation gaps are identified and disclosed. Conservative assumptions are applied where necessary, and higher-risk positions are avoided.

Next Step

If you are evaluating cost segregation, R&D tax credits, or land nutrient deductions, the appropriate starting point is a feasibility review.