The onsite verification provides a cost segregation professional, CSP, the opportunity to conduct a walk-through of the subject property. This is a critical component in a quality cost segregation study as outlined in the cost segregation audit technique guide – chapter 4 – principal elements of a quality cost segregation study and report.
The CSP will be documenting the properties assets, physical condition, and functional obsolescence.
Photographs are used to memorialize the visit and assist in identifying the assets that will be segregated. When photography is not allowed an explanation will need to be provided along with a detailed written description of the assets. An Onsite Verification of a newly constructed building should include photographs before and after construction to establish the land and site work.
Choosing the time of year for the site visit is important. If the site is covered in snow the CSP may miss land improvements that should be reclassified as 15 year property. The same is true if it is raining and the CSP is not able to access key areas of the site.
Ample time should be provided for the Onsite Verification. Often construction documents are not available and the time spent onsite will allow for an accurate description of the assets. If the property is tenant-occupied the owner will need to let the tenants know that the CSP will be taking measurements, counting assets, and photographing the property.
If you have any questions about scheduling an onsite verification for a property you are considering doing a cost segregation study on feel free to contact us.
