COST- SEG Presentation
- 1. Everything You Ever Wanted to Know About Cost Segregation … .Without Talking to a CPA (We’re an Engineering Firm)
- 2. Generates substantial Tax / Cash-flow benefits through accelerated depreciation of commercial real estate (including apartment buildings) Achieved through reallocation of components of “real property” (e.g. 39 year depreciation) to “personal property” (e.g. 5 to 15 year depreciation) It is estimated that owners of 90% of commercial property do not take advantage of this lucrative tax strategy What is Cost Segregation?
- 3. Increased Cash-flow Reduced Federal and State tax liabilities Current year “catch-up” opportunity Double digit R.O.I. Possible added reductions in: Real estate property taxes Insurance costs Cost per ft 2 on new construction Potential Benefits for Property Owners
- 4. Client Loyalty/Education/Awareness Deepen your relationship with prospective clients Education leading to/Resulting from Ownership Offer initial Cost Seg. Analysis at No-Cost Differentiation Provide unique education blend to YOUR benefits Potential Referral Income Each referral would result in dividends to YOU Potential Benefits for YOU
- 5. Not all Cost Segregation studies are the same: The Residual Study Method… Result… Reduced Benefit Increased Risk Cherry Picks obvious assets Does not meet all IRS principles of Quality Study provides limited longer term use Requires less professional knowledge
- 6. What Makes our Study different? The Engineering-based Method… Comprehensive, highly detailed & accurate Meets or exceeds all IRS principles of Quality Provides long term asset write-off usability Performed by professionals with Engineering & Tax knowledge Result… Maximized Benefit, No Risk
- 7. The Final Engineering Study Comprehensive & highly detailed Unique Engineering based approach Maximized Benefit All numbers “tick & tied” and every detail cross-referenced by hand notation Quality controlled Meets or exceeds all IRS guidelines of quality 2 Copies: Owner & Accounting Firm
- 8. Review architectural/engineering drawings and specifications, blueprints, contracts and invoices Reconcile all project costs Itemize assets that qualify for shorter life classification Inspect the facility with Engineers Allocate indirect costs Recalculate depreciation schedules Prepare Form 3115 (if Client CPA does not complete) Issue a report to their CPA that will outline future deprecation schedules for client tax filings Provide Engineering Methodology throughout the process What OUR Experts Will Do For YOU !
- 9. Millwork Decorative Items Land Improvements Special Piping/Plumbing Special Electrical Emergency Lighting Site Utilities Site Lighting Concrete Drains Special Structures Signage Window Coverings Demountable Partitions Paving / Sidewalks Carpet / Vinyl Tiles Security Systems Fume Exhaust System Vinyl Wall-Coverings Telephone / Data / TV Wiring Intercom Systems Examples of Assets that can be Reclassified
- 10. Not all Cost Segregation studies are the same! We only perform Engineering Based Cost Segregation to maximize our clients’ benefits within IRS guidelines. We engineers have performed over 10,000 studies nationally and is the leading provider of Engineering Based Cost Segregation analysis. Majority of CPA firms cannot provide this service We back their work at NO COST to the client! Why use US?
- 11. With minimal upfront client involvement, documents such as a simple depreciation schedule allow US to develop a preliminary study proposal at no cost, no obligation. This proposal will outline: Potential Benefit ranges A fixed cost for that study Return On Investment (R.O.I.) Know the Numbers !
- 12. Questions & Answers Contact Information: (512) 535-1338 (Office) Thank You!