On-Site Verification
Field Work is the first step in performing Cost Segregation. If you read the audit guidance from the IRS on Cost Seg, someone’s got to go to the field.
It’s called an “On-Site Verification”, or “OSV”. Although we have to verify the assets exist, Echo makes this very easy.
Construction Cost Estimating
The second step is Construction Cost Estimating (CCE). Echo is going to review the supporting documents you gather – and extract any pertinent project data.
Echo then does quantity takeoffs from the drawings (if you have any) – and your pictures from the field.
Legal Analysis
The third piece is Legal Analysis. Once Echo has the costs for all the items, it needs to evaluate each item under the current Cost Seg body of law.
This process without a doubt is vital and quite complicated. Although it has evolved, there is conflict in the law, it’s a little dicey.