Searching for Cost Segregation Provider: Are you asking the right questions?

Friday, March 4, 2016 - 12:52

When searching for a cost segregation provider, do you question what makes one stand out over the other? Do you ask all of the right questions? Are you certain your provider of choice is the right one? Will your deliverable meet your expectations? In today’s market, you could be contacted by a dozen plus different cost segregation providers trying to compete for your business.

Let’s address the deliverable first. Gone are the days where the cost segregation report only incorporates the principle elements referenced in the IRS Audit Technique Guide. The principle elements are absolutely still incorporated into every report; however, the reports have evolved with the new tax legislation. Reports must now comply with the tangible property regulations (TPRs). Unit of properties and building systems are necessary to be identified for taxpayers to benefit from the TPRs.

One question all taxpayers should ask a provider is, “For what I am paying, what will the deliverable include? Are their multi-tier fees for different pieces of the report?” Taxpayers need to make certain that they won’t receive one report, and then be told the tangible property regulations compliance “report” will be provided for an additional fee.

Another important question to ask a provider is, “Are all personnel involved in the preparation of the cost segregation report employed and on that provider’s payroll?” There are advantages to working with a provider who employees engineers, tax professionals, construction and real estate specialists. Working with an all-inclusive provider who can manage every aspect of the deliverable assists in maximizing tax savings as well as minimizing audit risk. Taxpayers need to make certain that they won’t receive the report, and then be told (due to outsourcing), the Form 3115 will be provided for an additional fee.

MS Consultants, LLC (MSC) is the leading industry provider of cost segregation studies. Since 1996, MSC has completed over 12,000 studies ranging in size from 500 square feet to over 2.4 million square feet. These studies involve buildings from a variety of industries, such as: automobile dealerships, retail plazas, office buildings, golf courses, manufacturing facilities, hotels, restaurants, apartment buildings, mixed-use, & more. MSC’s staff have a variety of backgrounds that provide the expertise necessary to complete a quality study. When working with MSC, one can be assured that all work is completed in house by full time staff and if your study requires a Form 3115, MSC will prepare and sign the form. Our fixed fee quote provides an all-encompassing deliverable. MSC clients can take comfort and have trust that every deliverable they receive will not only incorporate the principle elements according to the IRS Technique Guide, but will also be TPR compliant.

Loyalty is a great quality to possess and every provider hopes their clients are loyal to them. MSC will review a previously completed cost segregation report by your current provider and will detail out, at no cost, what MSC does differently and why. It is important you are working with a provider who is listening to you and providing solutions to your needs; not only in the area of cost segregation but also in the energy efficiency area as well. You want your provider to pro-actively bring these tax-savings solutions to you.

In an industry that is ever changing, if your provider is not addressing other tax savings opportunities with you, then make the call to MSC.

Ashley Sullivan, SCSP