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Questions When Choosing |
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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?
How does the firm do their reports?
- 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?
Does the firm do the reports in house?
- 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 carry professional liability insurance covering cost segregation?
- 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?
How does the firm archive your project documents?
- Check the limits
- What is the carrier rating?
Will the firm defend its work in the event of an audit?
- Is there redundancy is case of a system failure?
- Is there an additional expense?
- Does the firm retain necessary records?