Source Advisors

Source Advisors is a specialty tax consulting firm in Arlington, Texas. Cost segregation is one of several service lines: it also handles R&D tax credits and Section 174 amortization, 179D deductions, 45L credits, investment and production tax credits, tangible property regulation studies, fixed asset reviews, LIFO inventory accounting, sales and use tax, and commercial and business personal property tax.

A cost segregation study is performed by engineers and tax professionals who identify and separate property components against IRS depreciation schedules, including electrical and plumbing systems, floor coverings and millwork, landscaping and parking lot features, lighting, cabinetry and specialty finishes. The firm says studies are tailored to each property with an engineering approach and in-person site visits rather than generic percentages, and it prepares supporting filings such as Form 3115, the application for change in accounting method, and Form 7220. Work comes both directly from owners and through CPA firms, which it supports as a white-label partner with collateral, CPE courses and technical updates.

The firm describes more than 40 years in the business and says it employs ASCSP Certified professionals, a certification from the American Society of Cost Segregation Professionals that it calls a distinction held by fewer than 50 people nationwide. ASCSP introduced the first industry standards and certifications for cost segregation specialists in 2009. The firm's office is on Woodland Park Boulevard in Arlington.

Fees are not published. The intake form asks whether the building or renovation cost was greater than $500,000, which is a useful signal of the size of project the firm is set up for. Ask what the study fee covers, whether a site visit is included, and what audit support looks like if the IRS examines the deduction.