10 Questions CPA Firms Should Ask Before Hiring a Cost Segregation Partner

Cost segregation provides property owners and investors with an invaluable tax-savings tool for accelerating depreciation. The IRS requires that an engineer prepare a cost segregation study to determine how property will be classified, so it is essential that your CPA firm works with a specialty tax services partner expert that has years of hands-on experience in conducting the studies.

Growing Your CPA Firm’s Cost Segregation Services Niche

While your CPA firm likely recognizes the value of offering cost segregation services to your clients, you may need to partner with a specialty tax services firm that can provide engineering professionals as well as substantial expertise in leading cost segregation studies. Once you have a team in place, you can more readily identify prospects who can benefit from these services while maintaining control of the client relationship.

By asking the following 10 questions, you can narrow your field of candidates to find the best match for your firm.

  1. Do you have licensed engineers on your team?
  2. How many CPAs do you have on your staff? 
  3. How many cost segregation reports have you successfully completed?
  4. Do you have LEED-accredited professionals on your team?
  5. Do you have substantial expertise in conducting cost segregation studies?
  6. Can you provide references from other CPA firms?
  7. Can you provide examples of your due diligence experience that helps to avoid erroneous claims and accuracy penalties?
  8. Have you successfully completed audits, and can you provide three examples?
  9. Are there sample reports you are willing to share?
  10. Can you provide a few case study examples to demonstrate results?

Teaming with a Cost Segregation Expert

For the past 20 years, Engineered Tax Services has provided full-service specialty tax services to help CPA firms capture significant federal incentives for their clients. Our engineering and tax professionals have helped accountants and their clients substantially increase cash flow by identifying and reclassifying building assets for faster depreciation. We understand the tax ramifications that must be considered when conducting a cost segregation study as it relates to the issues of recapture, passive activity limitations and the intricate steps involved in 1031 exchanges.

Our goal is to help CPAs build out their specialty tax services niches by raising their profile as a firm providing a competitive advantage in your marketplace—with little or no capital investment.

Learn More

To learn more about our cost segregation services for CPAs, call Engineered Tax Services at (800) 236-6519 or visit our services for accounting tax professionals page for more information.