Over the years, cost segregation has steadily grown to become one of the most valuable tax-savings tools. CPA firms recognize the value in cost segregation studies because they know a dollar in their client’s hand today is worth far more than a dollar tomorrow. The IRS requires engineers to prepare these studies, so it’s essential that a CPA firm partners with qualified experts. Engineered Tax Services' cost segregation studies dig much deeper than simply accelerated depreciation.
Services Provided By a Cost Segregation Provider
Based on the latest tangible property regulations, we expanded our premium cost segregation studies to help CPA firms work with their clients to:
- Identify the potential for owners of newly designed or renovated buildings to take deductions for energy-efficient HVAC systems, lighting systems, and the building envelope, which may qualify for up to a $1.80/square foot tax deduction under the 179D Energy Policy Act (179D EPAct)
- Provide a detailed fixed asset accounting of their real estate investments for dispositions for undepreciated and retired assets
- Calculate the expense of undepreciated basis of property subject to qualified repair
- Calculate the expense of undepreciated basis subject to routine maintenance
- Manage and minimize recapture upon property sales
- Identify and recognize units of property and interdependent systems
- Determine bonus depreciation for reclassified assets
These benefits reflect the value that cost segregation studies provide to CPA firms as a top niche consulting service.
What to Look For in a Cost Segregation Provider
When you make the decision to partner with a CPA firm for cost segregation services, what should you look for? Engineered Tax Services recommend the following:
- Substantial expertise in conducting cost segregation studies
- CPAs on staff
- Licensed engineers
- Due diligence experience to avoid erroneous claims and accuracy penalties
- LEED-accredited professionals
You should also ask for the following:
- References from other CPA firms
- Number of cost segregations completed
- Successfully completed audits
- Sample reports
- Case study examples
The engineering and tax professionals on the cost segregation team at Engineered Tax Services have helped accountants and their clients increase their cash flow by identifying and reclassifying assets of their building for faster depreciation.
Engineered Tax Services partners with CPA firms across the U.S. to find new revenue streams through cost segregation studies for their clients. The use of premium cost segregation studies has helped our partner firms attract new clients while retaining existing ones. 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. Through our services, you can diversify your CPA firm and attract new clients to your firm.
To learn more about how Engineered Tax Services works with CPA firms to provide cost segregation services, call Engineered Tax Services at (800) 236-6519 or visit our cost segregation page for more information.