A simple engagement, built around your CPA.

From initial consultation to working with your CPA to take full advantage of cost segregation findings, our goal is to provide you with friendly, professional service that allows you the maximum tax advantage, while being careful not to be more aggressive than the IRS allows.

1. 1

   Initial Consultation

   We offer a free initial consultation that will help determine if a cost segregation analysis will be beneficial for your property. This consultation includes a projection of the benefits based on your specific property. We also look at the tax effects from a cost segregation analysis in regards to potential passive activity and net operating losses, potential real estate sales and 1031 exchanges, and potential sales of partnership interests or shareholder shares.

2. 2

   Engagement Letter

   When you sign the Engagement Letter contracting for our services, Franklin Tax Group will provide you with a request for documentation necessary for preparing the analysis.

3. 3

   Blueprint Analysis

   If available, we conduct an analysis on the “as completed” blueprints of your property.

4. 4

   Site Visit

   We conduct a site visit to your property to obtain a better understanding of its layout and design, adding to what we have already gathered from our analysis of the blueprints.

5. 5

   Qualified Property Documentation

   All qualified property eligible for accelerated depreciation is documented through photographs, which are included in the final cost segregation analysis.

6. 6

   Identification of Cost Detail

   We use either an “actual cost” or “engineered cost” approach to identify cost detail related to the components of the real estate. The “actual cost” approach uses detail gathered from construction documents and in some cases a general contractor questionnaire. The “engineered cost” approach is a cost estimating approach accepted by the IRS where estimates of cost components are prepared by Franklin Tax Group engineers. The three to four hundred line items of cost detail provides the most specific detail of the two approaches and most often the greatest tax benefit.

7. 7

   Property Classification

   A Franklin Tax Group CPA categorizes the component cost detail into the proper property classes for tax purposes.

8. 8

   Cost Segregation Analysis

   We prepare an IRS compliant written report documenting the full cost segregation study, delivered as a PDF and shared with you and your CPA.

9. 9

   CPA Instructions

   Supplementary instructions are provided to assist your CPA in incorporating the cost segregation analysis into the current year's tax return.

10. 10

    Follow Up Consultations

    If needed, we provide follow up phone consultations if additional assistance is needed by you or your CPA in understanding and applying the analysis.