Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
A cost segregation study is a great way to reduce your taxes, but remember, not every cost segregation study is the same.
When considering different cost segregation firms do your Circular 230 Due Diligence and ask:
- Does the firm have engineering licenses with the State Authorities, proper licenses overall, and proper insurance? - Has the firm been in business for a while? - Do they include energy tax benefits within their study? - Do they include insurance and property tax reduction reports in their study? - What is their reputation with the IRS? - Will they defend my report in an IRS audit? - Do they provide a Perpetual Cost Segregation Evergreen Annual Review to find annual expenses from dispositions, additions, favorable changes in tax laws while also using the changes to drive lower insurance and property tax premium?
What questions do you ask when looking for a reputable source for cost segregation studies?
Thank you Julio, for sharing. I had not heard about the Annual Review. I thought a cost segregation was a single study, not a continuum. Would that be an additional cost or included in the price?
@Olivia Leija It is most likely dependent on the firm that you work with, but with ETS, the annual review is included in your initial price. If you have improvements on your property, we will look at them every year.
I learned about a collaboration you are doing with Nelly Galan for tax strategy and education. Thank you in advance as we all need all the help we can get on the complex world of the tax code. I am so excited to share it when it becomes available and would like to commend you on embarking on that journey.