WALKER BRYCE & ASSOCIATES
COST SEGREGATION & FIXED ASSET OPTIMIZATION SPECIALISTS
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For CPAs and others who prepare federal income tax reports - we
offer a federal income tax saving opportunity for your clients who
own investment real estate.

Walker Bryce & Associates regularly partners with the accounting
profession in order to open various avenues of tax savings to its
clients. Our core service, and the foundation for many such
opportunities, is the cost segregation approach to depreciating
improved commercial real estate. In order to assist property owners,
we routinely request CPA involvement even before our services are
engaged, and continue those lines of communication throughout our
technical analysis and report issuance.

At your suggestion, your clients may benefit greatly from Walker
Bryce's  modestly priced cost segregation reports. In fact, there is
often a 50% to 100% increase in annual depreciation as a result of
precisely measuring the 5, 7 and 15-year property.

Cost segregation affects both tax reduction and deferred payment of
federal income taxes. Some real estate investors initially believe cost
segregation only defers payment of income taxes. However, by
converting the character of income from ordinary income to capital
gains income, it also sharply reduces the tax rate. The character of
the income changes since the additional depreciation shields
ordinary income from taxes. When the purchase price is allocated
upon sale, most of the gain is typically allocated to land and long life
property (instead of short-life property)

Rev Proc 2002-9, in combination with a change of accounting
method, allows owners a spectacular additional amount of
depreciation the first year. This makes cost segregation extremely
attractive for owners of commercial real estate who pay substantial
federal income taxes. It is possible to catch up all the depreciation in
the first year without filing an amended return (481a adjustment
rule), so there is little additional time or cost involved for your client.

Walker Bryce & Associates is proud to partner with accounting and
tax consulting firms across the United States.  We act as an extension
of our partner firms to provide a valuable service to their clients
that they do not have the internal resources to provide.  Our partner
firms find that partnering with us and providing Cost Segregation
services gives them an advantage in a competitive market.





















*
We are not a CPA firm.  This is important to consider when  
choosing a Cost Segregation firm.  It is to our benefit to help
you maintain a strong relationship with your clients
without the fear of introducing another CPA firm.  

Click here to request a free, no-obligation analysis for your client(s)
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. The ATG refers to the “detailed engineering approach,"
stating, “In general, it is the most methodical and accurate
approach, relying on solid documentation and minimal estimation.”
"The major advantage of
cost segregation is not
necessarily that it will
produce more depreciation
deductions. Instead, due to
the time value of money,
the advantage of these
front-loaded deductions
will be quantifiably greater
than had the deductions
been spread over longer
periods of time using
slower depreciation
methods."

Journal of Accountancy
© 2005 by the AICPA
"Partnering with
Specialized Services
Firms Can Attract New
Clients and Income
Streams to Your CPA
Practice"

Journal of Tax Practice
Management, Vol. 2,
No. 4, July-August 2003
By James E. Carroll,
Kristina Wagner, Scott
T. Meredith, and Tim
Moncher

"Cost segregation is an
excellent service to offer
your clients who own
commercial property, and
can easily be offered by
partnering with an
outside specialist." ...
cont.
What are the benefits of
a Study?

• Generates immediate
increase in cash flow
through accelerated
depreciation deductions.

•Reduces income taxes
and can also reduce real
estate property taxes.

•Provides an easy
opportunity to claim
‘catch up’ depreciation
on previously
misclassified assets.

•Provides an
independent third-party
analysis that will
withstand IRS review.
"Cost Segregation is a lucrative tax strategy that
should be used in almost every major purchase
of Commercial Real Estate."

                                       -Wall Street Journal
                                                        June 2003  
Reduce Taxes,
Increase Cash Flow
TOP TEN
MYTHS  ABOUT
COST SEGREGATION STUDIES
What is Cost Segregation?
How Clients Benefit
Overview
FAQs
...more FAQs
Success Stories
Working with...
CPAs
REITs
Direct Lenders & Originators
Commercial RE Brokers
Commercial Mortgage Brokers
CRE Management Companies
"Each $100,000 in assets
reclassified from a 39-year
recovery period to a
five-year recovery period
results in approximately
$22,000 in net-present-value
savings, assuming an 8%
discount rate and a 40%
marginal tax rate."

- Journal of Accountancy,      
 Copyright 2005 by the AICPA
Money doesn't grow on
trees...But could it be
hidden in the walls?
WORKING WITH CPAs
© 2006 Walker Bryce & Associates LLC. All Rights Reserved.
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                      *Thank you for taking the time to visit our web site. The material contained here is best read as an invitation to explore
                         what Walker Bryce & Associates can do for you and what we can do together. We hope you will review it in that spirit.
  WALKER BRYCE & ASSOCIATES