How cost segregation providers pay CPA firms
Cost segregation providers pay CPA firms in three broad ways: a margin when the firm offers the study under its own engagement, a one-time fee when a referred study is completed, or nothing beyond co-marketing and continuing education. Each model changes when you are paid, what the client sees on the invoice and which ethics questions apply.
The same evaluation works for any referral arrangement your firm considers, including introducing operating-company clients to SourceX for data licensing.
The four program models side by side
| Model | How the firm is paid | When it pays | What to check |
|---|---|---|---|
| White-label or resale | The firm bills the client and keeps a margin over the provider's price | When the client pays the firm | Engagement letter wording, quality control and liability for work another party performed |
| Referral fee per study | A one-time fee, sometimes on a schedule by study size | After delivery or payment, per the provider's terms | Whether the client is an attest client and how the fee is disclosed |
| Affiliate or partner link | A fee for each referral tracked through a link or portal | Per the program terms | Whether the link is disclosed every time you share it |
| No fee | Co-marketing, CPE sessions or joint client education | Not applicable | Whether the provider's quality and pricing still serve the client |
Ask every provider for its schedule in writing. Some partner pages describe the program but leave the economics to a call, and a written schedule is what lets you compare like with like and record what you disclosed.
What the AICPA Code and state boards say
The Commissions and Referral Fees Rule (ET 1.520) is the main check. A member in public practice may not accept a commission for recommending a product or service to a client when the firm also performs an audit, review, certain compilations or an examination of prospective financial information for that client, and permitted commissions and referral fees must be disclosed to the client (AICPA Code of Professional Conduct). The page on attest vs non-attest referral fee rules shows where that line falls in practice.
State rules sit on top. Kansas requires each CPA and firm to comply with the AICPA provisions on commissions and referral fees by reference (K.A.R. 74-5-103). Florida regulates CPA commissions and referral fees by statute, including written disclosure of commissions (Florida Statutes 473.3205; the linked page is the 2017 version, so check the current statute). Your own state board may differ from both.
This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.
If-then rules for a referral decision
- If the firm performs attest work for the client, treat any commission as off the table until your ethics partner has reviewed the rule and your state's version of it.
- If the client is non-attest, put the fee, who pays it and what triggers it in a short written disclosure before the client signs with the provider.
- If the provider's price rises when a referral fee is paid, tell the client or decline the fee.
- If you cannot explain the fee in one sentence, ask the provider to simplify it before you refer anyone.
- If the client is an operating company and not just a property holder, ask whether its records, not only its buildings, could be an asset.
Applying the same test to a SourceX introduction
Cost segregation clients are property owners; SourceX looks for operating companies. The overlap is a manufacturer, distributor, logistics or engineering business that owns its facilities and also runs years of operations through ERP, CRM, ticketing and shared drives. For those clients, compare the two arrangements on identical questions.
| Question | Cost segregation referral | SourceX introduction |
|---|---|---|
| Who is the right client? | A property owner with building costs worth analyzing | A US operating company with 50+ full-time employees at peak (contractors excluded), several years of records it has the right to license, and a sponsor who can sign |
| What does the client receive? | A study supporting its depreciation positions | A one-time payment for a data license, while keeping ownership of the data |
| What triggers your payment? | The provider's terms | Only the buyer's payment and SourceX's receipt of its fee |
| How is your payment calculated? | Provider schedule or resale margin | 25% of the fees SourceX collects on eligible deals, up to $100,000 per referred company |
| Does the client pay more? | Ask the provider | No; it is paid out of SourceX's fee, so nothing comes off what the company receives |
| What do you do after the introduction? | Sometimes gather property data for the study | Nothing with the records; the company works directly with SourceX |
If you are also comparing these models with software partner programs, referral fees as a percentage of first-year contract value explains that convention, and what a referral fee agreement is lists the terms to get in writing.
Limits worth knowing
- A data license does not suit holding companies, single-property LLCs or businesses whose value is mainly real estate; the records have to come from operations.
- Data licensing is a commercial license of records the company owns, not a tax planning service, and it does not change a client's depreciation.
- Rewards are not guaranteed; many introductions will not qualify or will not close.
- Your firm's own policy may be stricter than the Code or your state rule; check it first.
Next step
Pick one non-attest operating-company client that owns its facilities and keeps deep records, open the referral earnings calculator to see the reward formula, and read the payout conditions on the rewards page. Then register as a partner. Firms building a wider referral practice can start with referral opportunities for accountants.