Earlier this year an investor client who does cost segregation strategic planning contacting me asking if I’d be interested in working with her clients who use cost segregation as a tax planning strategy. Cost Segregation is a strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
This client’s firm had been working with a home inspector previously for these cost segregation on-site verifications, but he was simply “winging it” and had no agreement/contract. I reached out to Nick Gromicko who put me in touch with his legal counsel to create an agreement for this new service. So far, it has been very lucrative and much simpler than a home inspection. My role is to identify property assets into appropriate categories for tax depreciation purposes. An on-site verification consists primarily of identifying, collecting, and recording data such as: number and type of light fixtures, windows, square footage of rooms, size of countertops, HVAC BTUH, tonnage etc.
If you’re interested in adding this type of service, please let me know and I’d be glad to share resources. A huge thanks to @gromicko for making this happen.
Below is the language from the agreement that is specific to cost segregation (the rest is the same/similar to any other InterNACHI agreement):
(Inspection Company) will conduct a Cost Segregation Inventory (the “Inventory”) at the Property for the purpose of identifying property assets into appropriate categories for tax depreciation purposes.
This Inventory is NOT a home or building inspection, or any other similar service which may be utilized to identify issues which should ordinarily be disclosed to potential property purchasers or for property renovation, nor is this Inventory meant to fall within any traditionally accepted standard of practice for the same. Moreover, this Inventory is not intended to meet any regulatory or statutory requirements which compel homeowner disclosure to potential purchasers, for home renovation, for administrative permit requirements, or any other similar requirement.