Why the study has to hold up for you, not just the client
A firm that puts a study’s numbers on a return is relying on someone else’s work for a return position. Advice directly relevant to a return entry can make the adviser a nonsigning preparer under §6694, and the AICPA standards require reasonable reliance on information from others. Both point to the same thing: a study whose every number traces to a document and an authority.
That is how Ricerca studies are built. Code computes every figure from the client’s documents, each classification cites its authority from a closed list, an independent CPA Agent reviews the file against the IRS Audit Techniques Guide, and a CPA approves it. Read how a study works.
How firms work with us
- Introduce the client. We run the assessment and the study, and deliver the schedules to your firm for the return.
- Work it alongside us. Firms already using the Ricerca CPA Firm Portal for R&D studies can talk to us about running cost segregation studies there too.
- Look-backs for existing clients. Buildings already on the books are often the best candidates: one Form 3115, one §481(a) catch-up, no amended returns.
Red flags examiners look for, in any study
Use this list on any study a client brings you, ours included. Each is a review step the Audit Techniques Guide gives examiners.
| Red flag | What to check |
|---|---|
| Mixed recovery periods inside one unit of property | Each property unit should land in one class; a split needs a reason. |
| Structural components called 5- or 7-year | Walls, roofs, general HVAC and building wiring are §1250 unless a specific rule moves them. |
| No land, or almost none | Land is valued first. A study that relies only on assessed values deserves a second look. |
| Creative names for ordinary components | "Process piping" that is really sewer line. Nomenclature should match the drawings and pay applications. |
| Furniture and equipment counted twice | Separately purchased FF&E already on the books must be carved out of the building cost. |
| A flat percentage of electrical or plumbing | The IRS wants an allocation by use, item by item, not a standard percentage. |
| Wrong placed-in-service dates or methods | A prior straight-line election binds reclassified assets in that class; dates drive the bonus rate. |
Clients to look at first
Medical and dental practices
Owner-occupied buildings with heavy equipment-serving build-out.
Manufacturers
Process-related systems, and the new §168(n) production property election.
A/E firms
Office build-outs and qualified improvement property (15-year straight line), often the same clients as the R&D credit.
Short-term rental owners
Where the passive-loss analysis decides whether the deduction is usable.
Questions partners ask first
Who signs the return and the Form 3115?
Can we review the study before the client sees it?
How is it priced?
What about clients with an R&D credit as well?
Primary sources
What this page relies on, as reviewed October 2, 2026.
- IRS Pub 5653, Cost Segregation Audit Techniques Guide (rev. 2-2025)
- AICPA Statements on Standards for Tax Services (eff. 2024-01-01)
- 31 CFR §10.37, Circular 230 written advice (Cornell LII)
- Rev. Proc. 2025-23, List of Automatic Changes (DCN 7, §6.01)
- IRS Instructions for Form 3115
Tax law, IRS guidance and state conformity change. Confirm the current rules and how they apply to your property with a qualified professional before acting.