A Cost Segregation study involves a detailed, multi-step process that moves from a complimentary benefit analysis and fixed fee quote, through intensive engineering work, to the final delivery of a comprehensive report used to accelerate tax deductions. The cost for the study is typically provided via a fixed fee quote after the initial analysis, ensuring transparency before commitment, and the fees are designed to be competitive while delivering Big Four-comparable quality.
The process is highly collaborative, starting with a discussion with your CPA/finance team and including a crucial on-site visit by engineers to inspect the property. This ensures every building component is captured and costs are accurately allocated. Engineered Tax Services (ETS) verifies land values using property tax records or appraisals to provide realistic, conservative estimates, guaranteeing reliable results that maximize your tax benefits.
Cost Segregation Study Process: Step-by-Step
- Complimentary Benefit Analysis & Quote: Provides an estimated tax benefit and a fixed fee quote for the study upfront, ensuring transparency before commitment.
- Collaborative Discussion: A meeting with you, your CPA, and your finance team to discuss utilization of benefits and potential limitations.
- Engagement: Signed engagement letter and retainer payment to begin the scheduling process.
- Information Gathering: Request for documents, including property details, cost, placed-in-service dates, land values, drawings, appraisals, and site plans.
- Site Visit: An essential step where the engineering team conducts a hands-on inspection to capture every building component eligible for acceleration.
- Engineering Analysis: The engineering team reconstructs the detail of your property, classifying and allocating costs accurately.
- Draft Results & Review: Draft findings are shared with you and your CPA for confirmation and feedback.
- Final Report Delivery: A final comprehensive report is delivered, ready to be applied to your tax return to reduce estimated payments or optimize the next return.
Cost & Value
- Pricing Structure: Fees are highly competitive and provided via a fixed fee quote.
- Quality: ETS maintains the same level of quality and thoroughness as Big Four firms, often at a fraction of the cost.
- Land Value Verification: Unlike providers using placeholder percentages, ETS verifies actual land values from property tax records or appraisals to ensure realistic, conservative estimates and reliable results.
- Return on Investment: The study is an investment designed to deliver top-tier results and real value, maximizing accelerated deductions, bonus depreciation, and enhanced cash flow.
