Some cost segregation firms charge a small deposit up front, then take a cut of what the study finds, or charge a fee that scales up as the deduction gets bigger. It is common enough in this industry that it is worth asking about before you sign with anyone.
We do the opposite. One flat, published fee, set before we ever open your file. It does not move no matter what the study finds. See the published prices.
The big idea: when a preparer's pay depends on the result, the pull toward a bigger number gets stronger than the pull toward the right number. A fixed fee removes that pull completely.
What the rules say about contingent fees
Circular 230 is the U.S. Treasury's rulebook for anyone who practices before the IRS, including enrolled agents, CPAs, and attorneys. Section 10.27 puts strict limits on contingent fees for tax work. As a general rule, a practitioner cannot charge a fee that depends on the outcome for work tied to an original tax return. The rule carves out a few narrow situations, mainly an actual IRS exam of a return already filed, certain amended returns tied to that exam, and cases that go to court. Preparing a return, or a study that supports one, is not one of those carve-outs.
The AICPA's own standards for tax practice point the same direction. An independent result is more trustworthy when the person producing it has no financial stake in which way the number moves.
Why this matters for a cost segregation study
A cost segregation study puts a dollar figure on your building. If the firm's pay goes up when that figure goes up, that is a conflict, at least in appearance, and it is exactly the kind of conflict Circular 230 tries to keep out of the return itself. Holding the study behind the return to that same standard keeps the number honest, and easier to defend if the IRS ever asks about it.
The fee should never care which way the number moves.
Our fixed fee, in plain terms
Our price is published on the pricing page, not quoted over a phone call. It does not change based on the size of your deduction, and it comes with audit defense in writing at no extra fee.See what audit defense covers.
Next step:See the full price list, or readwhat makes a study audit-defensible for the quality standards behind it.
This guide explains general tax ideas in plain words. It is not tax or legal advice, and it is not a complete statement of Circular 230 or the AICPA's standards. Ask your tax professional how the rules on fees apply to your own preparer relationship.