Reduce Taxes, Increase Cash Flow

Taxes are one of the largest expenses for commercial property
owners. And the fact is, thousands of commercial property
owners are overpaying their Federal Income Taxes each year.

Why?

Because they're missing out on allowable depreciation expense
deductions.

Ironically, these accelerated depreciation expense deductions
are readily available to all federal taxpayers under existing
IRS tax laws. However, without an engineering-based cost
segregation analysis, the taxpayer is unable to take full
advantage of the tax law, thus forgoing the significant cash
flow remitted to the IRS each year.

Walker Bryce & Associates works with commercial property
owners, their CPA's and various other industry professionals
from across the nation to increase cash flow from constructed
buildings, purchased properties and renovations by
accelerating depreciation expense deductions.

Through what is called "cost segregation," the components of a
building are reclassified into proper class lives according to
MACRS (Modified Accelerated Cost Recovery System), case law
and IRS revenue rulings. MACRS property is tangible,
depreciable property that has been placed in service since
December 31, 1986 as prescribed by the Tax Reform Act of
1986. For example, a building's floor, roof and walls might be
classified as 39-year section 1250 real property; site
improvements such as sidewalks and landscaping would be
classified as 15-year section 1250 real property; carpeting and
decorative lighting as 7-year section 1245 tangible personal
property and computer associated items as 5-year section
1245 personal property.

If you own or lease a facility, the depreciation deduction is one
of the most significant, but often overlooked opportunities to
reduce the income tax liability. Whether you are buying,
building or improving a building, Walker Bryce & Associates
can help maximize your income tax deductions through our in-
depth cost segregation service.

IRS Audit Techniques Guide (ATG)

In December 2004, the IRS released the “Cost Segregation
Audit Techniques Guide”. The guide discusses the various cost
segregation methodologies, tax-deferral strategies, Section
1031 exchanges, and the characteristics of a quality cost
segregation study. In reference to the “detailed engineering
approach”—which is the approach used at Walker Bryce—the
IRS states: “In general, it is the most methodical and accurate
approach, relying on solid documentation and minimal
estimation.”
Journal of Accountancy
© 2005 by the AICPA

Cost segregation studies are beneficial in all geographic
markets and in a wide range of property and business types.
The tax benefits can be applied to a number of different types
of real estate:

Some Building types include:

•Amusement park
•Apartment
•Assisted living/nursing home
•Auto dealerships
•Auto service garage
•Bank
•Bowling alley
•Car wash facility
•Cold storage facility
•Commercial building
•Convenience store
•Hotels
•Office building
•Manufacturing
•Medical building
•Restaurant
•Retail space and many more...

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