Questions When Choosing

As Cost Segregation becomes more widely used many providers are entering the market place. To protect yourself against an audit ask these questions before you make a decision.

What are the backgrounds of the company owners and how long has the firm been in business?

Who performs the work?

• Since the IRS has stressed the importance of engineering-based studies many firms use terminology without actually having Engineers on staff
• Does the firm employ degreed engineers and architects?
• Does the firm employ any Professional Engineers (P.E.s) or Architects?

How does the firm do their reports?

• Verify that a detailed engineering approach is provided with a breakdown of all costs, including those that do not qualify for accelerated depreciation.
• Without this methodology you may be at risk of an audit!

Does the firm do the reports in house?

• If not, what third party is being used?
• What are the subcontractor's credentials?
• What quality assurance measures are in place to support this arrangement?

Does the firm carry professional liability insurance covering cost segregation?

• Check the limits
• What is the carrier rating?

How does the firm archive your project documents?

• Is there redundancy is case of a system failure?

Will the firm defend its work in the event of an audit?

• Is there an additional expense?
• Does the firm retain necessary records?