Taxpayer couldn’t modify purchase price allocations after cost segregation study

The Tax Court has concluded that a taxpayer could not modify purchase price allocations that it agreed to in connection with two asset acquisitions.  The taxpayer made the modifications in an attempt to secure quicker depreciation deductions following a cost segregation analysis.  The Court concluded that IRS did not abuse its discretion in prohibiting the taxpayer from determining useful lives of assets in a manner that was inconsistent with the original allocation schedule.

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