Why Ernst & Morris for cost segregation studies?
One of The Nation’s Oldest & Largest Firms
Ernst & Morris Consulting Group, Inc. is one of the nation’s oldest and largest firms dedicated to performing cost segregation studies. E&M understands that any good business decision is based on the return on investment. Our clients recognize the combination of value and quality they receive, which results in a tremendous amount of repeat business. With over 18,000 completed studies, Ernst & Morris has earned the reputation as the highest quality provider in the industry.
Over 150 Years of Experience
The Ernst & Morris team consists of a combination of engineers, construction professionals and consultants who collectively possess over 150 years of combined cost segregation experience solely with E&M. E&M is not a CPA firm, however Ernst & Morris is trusted by more CPA’s to perform cost segregation services for their clients, than any other cost segregation provider nationwide. According to the IRS, “cost segregation studies should be performed by qualified individuals or firms such as those employing personnel competent in design, construction, auditing, and estimating procedures relating to building construction.”
IRS Support and Experience
E&M studies conform to the “engineering approach”, the highest standard set forth in the “Cost Segregation Audit Techniques Guide” issued by the IRS. Our studies have been successfully defended during an IRS examination and have withstood the scrutiny of IRS audits as well as thousands of CPA reviews. During a recent IRS audit, the IRS agent informed the client that E&M’s product was the most detailed and thorough study they had ever examined. Ernst & Morris offers complete IRS audit support, with every cost segregation study we perform.
Managing Director And Company Employees
E&M Shareholders have practiced cost segregation for a minimum of 15 years and were personally trained by our principle, Michael P. Morris. As Managing Director, Mike has spent 35 years, exclusively, in the cost segregation arena including eight years with Arthur Andersen. Mike Morris is recognized as a subject matter expert on cost segregation studies and tax depreciation around the country. Mike has extensive experience in performing cost segregation studies, real estate appraisals, purchase price allocations, property records and property tax studies. He has successfully collaborated in construction contractor audits, construction claims and dispute litigation, and construction contract reviews. Mike has broad experience defending and collaborating cost segregation studies with the Internal Revenue Service. Mike is a member of the American Society of Cost Engineers and a frequent speaker at AICPA conferences and various other CPA conferences. Mike Morris has authored numerous articles on the subject of cost segregation and is a frequent contributing author to several tax related publications.
Ernst & Morris professionals are all full time salaried employees. This includes sales, marketing, engineers, production analysts, managers and associate level production assistants. E&M does not employee an outside sales force or contractual production managers during peak times, but rather focuses on training and retaining a team of devoted professionals. These dedicated experts will more likely, be on hand to defend a study, in the improbable event of an audit.
Audit Trail Provided
Ernst & Morris is one of only a few firms in the industry to provide a comprehensive work paper file and supporting audit trail with every study. With over 18,000 completed studies, E&M has earned the reputation as the highest quality provider of cost segregation studies. Complete audit defense is automatically included with every completed study.
Complimentary 48 Hour Estimate
Ernst & Morris provides a complimentary feasibility analysis usually within 48 hours of the request. This complimentary estimate projects the tax benefit available and quantifies the cost of having a study performed.
Complete Review for Maximum Benefit
E&M performs a complete “take-off” of the property, including items that do not qualify for accelerated depreciation. Ernst & Morris completely reviews the blue prints and identifies the quantity of take-offs and cost estimates for personal property that were not segregated through other cost information. In contrast, the “residual approach” (abbreviated method) which is commonly used, contains no analysis of the building or building components. In addition, E&M goes one step further and color codes the blue prints. This clearly delineates the “what, why & how” we claim as personal property versus real property. E&M uses civil/site work, structural, architectural, plumbing, HVAC and electrical drawings. The coding of the construction drawings is an integral piece for the defense of cost segregation studies to the IRS.
Site Inspection on Every Study
Ernst & Morris performs an inspection and secure digital photos of every property that we study in order to document and gain a comprehensive understanding of the use and condition of the facility. This inspection is also used as a means to gather additional information to further support the classification of personal property into the appropriate asset class.
If you own property valued above $750,000, E&M can help reduce the current tax liability with professional, “engineering-based” cost segregation studies. Call E&M at 1.800.COSTSEG for a complimentary analysis of savings and fees.
According to a recent article in the AICPA’s Journal of Accountancy,
“Selecting a firm that uses qualified professionals with years of significant, relevant experience can be an important differentiator in the quality of a cost segregation study.”
Journal of Accountancy
© From the AICPA