What do cost segregation services include?
Quality cost segregation services include, but may not be limited to, these attributes:
1) Engineer-conducted site analysis and survey
2) Photographic or video documentation of the building and site components
3) Engineer-conducted analysis of all construction drawings
4) Engineer-conducted analysis of building/site appraisal
5) Engineer-conducted analysis of all data collected
6) Engineer-verification of all data collected
7) Cross-reference all data against current internal database
8) Further cross-reference all data against RS Means/Marshal & Swift construction cost data for costing accuracy
9) Engineer-paneled committee reviews cost segregation draft report
10) Compilation of all data into a cost segregation final report
11) Deliver final cost segregation report to client (digital and printed)
While various cost segregation firms follow this outline there are many that do not. Furthermore, due to the lack of enforced quality-control standards by any governing body, any firm engaged in cost segregation can, in fact, perform cost segregation without an engineer ever looking at it. However, there is an organization formed by several cost segregation firms desiring to set quality standards though they are not an "official" governing body.
The American Society of Cost Segregation Professionals (ASCSP) has a stated mission that reads as follows:
The ASCSP was created to provide organizational oversight on an industry where there was none.
The ASCSP's goal is to provide its members with educational programs and continuing education programs; create and maintain minimum quality standards, and provide a Code of Ethics.
ASCSP will establish, monitor and upgrade (as needed) these programs and standards for the industry through the implementation of certification and training.
Additionally, ASCSP will openly solicit and accept input from the Internal Revenue Service in order to establish the standards by which cost segregation reports will meet the "Principal Elements of a Quality Cost Segregation Study and Report" as delineated in the Audit Techniques Guide for Cost Segregation Studies promulgated by the Internal Revenue Service.
ASCSP has been formed with the goal of establishing a measurable standard by which cost segregation consultants can be evaluated both from a business practice standpoint as well as actual quality of deliverables.
ASCSP has developed or is currently developing the following:
- Levels of credentials for individuals based on education and actual cost segregation experience;
- Development of approved cost segregation protocols and report formats;
- On-going training, education and certification procedures for cost segregation consultants;
- Code of ethics for cost segregation consultants;
- Mechanism for enforcement (i.e. de-certification) of non-compliant members;
- Public awareness of ASCSP standards to help taxpayers and their advisors make informed decisions;
- Relationship to serve as an intermediary between the IRS and the cost segregation industry to promote best practices and provide ongoing refinement of scope and protocols consistent with regulatory developments.
The ASCSP, as stated, has taken strong steps in building quantitative and qualitative standards by which the cost segregation industry can be measured. Not all cost segregation firms adhere to these standards, but many do. There is an old adage, “you get what you pay for.” If you, or your company, are evaluating cost segregation firms, let the buyer beware! A quality cost segregation report including the above list, and more, will NOT be the least expensive cost segregation study. Quality cost segregation services take time, and as we all know, time is money.
To receive your free, no obligation estimate of what cost segregation can do for you, click on Free Assessment to open a simple, one-page questionnaire. Complete the requested information and we will forward a benchmark analysis sharing how much additional depreciation can be accelerated into 5- and 15-year periods from the current 39-years. Plus, it will also share our fixed fee for services. Typical cost segregation services will give the owner 1000% ROIs or more, fee vs. income tax credits.
Cost segregation services deliver results every time it’s applied!