Are you paying too much tax?

Thousands of commercial property owners overpay federal income taxes every year. Don't blame your CPA. in order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. The majority of CPA firms are not qualified to provide this type of service as their specialty is tax, not engineering discipline. We have professionals who are qualified to provide you with teh financial analysis study needed to document depreciation changes and provide you the maximum tax benefits allowable by law.

See if you qualify, do you... Own commercial property with a valuation of $1,000,000 or higher? Pay federal income taxes? Operate as a For-Profit entity? Plan on holding your property for more than one year? If you answered Yes to ALL four questions, then you qualify for a No-Charge Component Analysis. What does this service cost? We will pay for the initial study which will show you how much your tax benefits will be...no obligation, no confidential information, or personal information required. Should you choose to take advantage of the tax benefits available to you, our fixed fee will be outlined in our proposal for you and your financial advisor to review - the benefits can begin immediately and can continue for future years.

10 Benefits of Building Component Analysis Reduction in Federal and State tax liabilities Repair, remodeling and replacement will be less costly due to detailed breakdown of building components For building you propose to construct, the study can actually reduce the cost per square foot increase cash flow through accelerated depreciation May reduce real estate property taxes Corrects misclassified assets and gives you the opportunity to claim "catch up" in the current year Benefits bank loan qualifications Reduces insurance costs Demolition and rehabilitation: allows property owner to write off certain assets opposed to capitalizing those assets Bridges the gap between engineering, construction, and accounting systems

Example:

Cost segregation study on a $2MM building. 40% of the building is reclassified as 5-year property eligible for Accelerated Depreciation.

• Reclassified 5-year property: $800,000
• Remaining 39-year property: $1,200,000

Depreciation – After Cost Seg Study:

• 5-year property = $800,000/5 years = $160,000 x 2 (200% declining bal depr) = $320,000
• 30-yr. property = $1,200,000/39 years = $30,769
• Total Depreciation = $320,000 + $30,769 = $350,769

Difference in Year 1 Depreciation:

	No Cost Seg	Cost Seg
Total Depreciation	$51,282	$350,769
Tax Benefit	$20,513	$140,308

The benefit of cost segregation is to front load the depreciation schedule and receive the greatest tax benefit up front.