overview

Cost Segregation is an IRS
defined and sanctioned
approach that requires skills
and expertise in
Construction Engineering
and Taxes. The process
allows Commercial Property
owners to REDUCE
FEDERAL TAXES by
accelerating the
depreciation on their
properties by separating real
(essential) and personal
(non-essential) components
of building cost and
reclassifying the
depreciation on the personal
items from 39 years to 5, 7,
and 15 years.

"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

Cost Segregation is a significant tax benefit that allows real estate
investors to accelerate depreciation on their investment property for
income tax purposes.

The IRS has made changes in the depreciation rules that help investors
reduce their current tax liability.

Many times, assets in a building are depreciated over building life (39 yrs
commercial 27.5 residential) and are actually personal property and can
be written off over 5, 7 or 15 yr period which allows for a larger tax
deduction.

In order to take advantage of cost segregation, an engineering study must
be performed to document and carve out these assets within a building.

Walker Bryce & Associates Consulting can provide a preliminary review
and analysis at no cost or obligation to determine your tax benefit. At that
time we will fix a fee for implementing the study.

Cost segregation is based on the fundamental principle that “a dollar
today is worth more than a dollar tomorrow”. The same logic applies to
the statement: “a tax deduction today is worth more than a tax deduction
tomorrow”.

Give us a call today and let us show you how you can reduce your tax
burden and increase your cash flow.

Walker Bryce & Associates
The Empire State Building
350 Fifth Avenue
59th Floor
New York, NY 10118
(877) 33-BRYCE (332-7923) Toll Free
(917) 771-5152
(917) 591-3161 FAX
info@walkerbryce.com

REQUEST A FREE ANALYSIS

Many CPA firms have not taken advantage
of cost segregation because they do not
have the engineering resources
internally to perform these studies.

In order to qualify for a cost segregation
study, you need to have $1M in building
value and you must be taxable. If you are
in a net operating loss, there is no tax to
defer. Cost segregation studies can be
performed on new and existing properties.

The IRS allows investors to correct
depreciation on all property that you own
as far back as 1987.

Utilizing a cost segregation
study earns you tax savings
immediately and in the
future. Typical first year tax
savings are 4:1 to 50:1. You
can achieve substantial
results with minimal risk.

Cost segregation studies
are beneficial in all
geographic markets and in
a wide range of property
and business types.