"Does the IRS require site visits for cost segregation studies?"

[Melanie Baldridge]

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

[Jay Hinrichs]

to my knowledge no.. I did one on a doctors office I bought and my CPA did it.. I just had to provide list of equipment bathrooms parking  and hvac etc etc.. and pictures to back it up.

land to building ratio  So I helped her through it and it worked out great for us.

[Daniel Kazakos]

Quote from @Jay Hinrichs:

to my knowledge no.. I did one on a doctors office I bought and my CPA did it.. I just had to provide list of equipment bathrooms parking  and hvac etc etc.. and pictures to back it up.

land to building ratio  So I helped her through it and it worked out great for us.

 I hope your CPA had an engineering study to go along with all the work they did. Otherwise, your cost segregation could be disallowed in an audit.

[Sean O'Keefe]

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

There's this thing called Hierarchy of Tax Authority that CPAs and Tax Attorney's reference.

Let's not get too carried away with comments like, It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

[Jason Malabute]

I was talking to a cost segregation specialization vendor that does this nationwide. He said he does not physically visit the properties

[Sean O'Keefe]

Quote from @Jason Malabute:

I was talking to a cost segregation specialization vendor that does this nationwide. He said he does not physically visit the properties

.
This provides even less creditability than saying, you can ignore the IRS Audit Techniques Guide.  

[Sean Graham]

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

@Melanie Baldridge good post. When/how does your team decide on doing a physical site visit vs. a virtual site visit? 

[Melanie Baldridge]

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

@Melanie Baldridge good post. When/how does your team decide on doing a physical site visit vs. a virtual site visit? 

We offer physical site visits for properties above $2.5/3M or if it's required by the client.

Around 95% of our studies are done virtually but if you need boots on the ground and it makes sense for your property or portfolio, we'd be happy to help.

[Sean Graham]

Quote from @Melanie Baldridge:

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

@Melanie Baldridge good post. When/how does your team decide on doing a physical site visit vs. a virtual site visit? 

We offer physical site visits for properties above $2.5/3M or if it's required by the client.

Around 95% of our studies are done virtually but if you need boots on the ground and it makes sense for your property or portfolio, we'd be happy to help.

Makes sense 

[Sean O'Keefe]

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

@Melanie Baldridge good post. When/how does your team decide on doing a physical site visit vs. a virtual site visit? 

We offer physical site visits for properties above $2.5/3M or if it's required by the client.

Around 95% of our studies are done virtually but if you need boots on the ground and it makes sense for your property or portfolio, we'd be happy to help.

Makes sense 

Does your company do onsite visits? 

[Sean Graham]

Quote from @Sean O'Keefe:

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

Quote from @Sean Graham:

Quote from @Melanie Baldridge:

A question that we get:

"Does the IRS require site visits for cost segregation studies?"

While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”

It’s important to note that the ATG is not an official IRS document.

It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.

However, the recommendations in the ATG are worth considering.

According to the guide:

“A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”

So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

@Melanie Baldridge good post. When/how does your team decide on doing a physical site visit vs. a virtual site visit? 

We offer physical site visits for properties above $2.5/3M or if it's required by the client.

Around 95% of our studies are done virtually but if you need boots on the ground and it makes sense for your property or portfolio, we'd be happy to help.

Makes sense 

Does your company do onsite visits? 

Yes, we do both. We will mostly do on-site visits, but we do virtual for smaller projects as well.