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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?
  • 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?