Cost Segregation

754 visualizações

Publicada em

How Cost Segregation can accelerate depreciation and improve cash flow.

  • Seja o primeiro a comentar

  • Seja a primeira pessoa a gostar disto

Cost Segregation

  1. 1. Cost Segregation Services<br />Increased Cash Flow Through Accelerated Depreciation<br />The Concord GroupConstruction / Cost Segregation Consultants <br />
  2. 2. The Cost Segregation Team <br />Combined Approach of Cost Estimators, Engineers and Accountants<br />
  3. 3. What is the Benefit of Performing a Cost Segregation Analysis…<br />
  4. 4. How Do We Get The Benefits…<br />Accelerated Depreciation<br />Reduction in Taxes<br />Increased Cash Flow<br />Grow the Business<br />
  5. 5. The Depreciation Difference<br />Yearly Depreciation Rate<br />Year<br />
  6. 6. What a Difference a Study Can Make….<br />First 5 Years of Ownership<br />Total Depreciation<br />Asset Class Life<br />
  7. 7. When Does it Make Sense…<br />
  8. 8. For Properties Already Owned<br />Correcting the Classification of Assets is Now Available<br /><ul><li>Revenue Procedure 96-31 Allows the Reclassification of Assets
  9. 9. File a Form 3115 (Change in Accounting Method) with Your Current Tax Return
  10. 10. Benefits are Taken in the Current Year – No Need to Amend Tax Returns</li></li></ul><li>Reclassification Example<br /><ul><li>Existing Owned Building – 5 Years of Ownership
  11. 11. Cost Segregation Study Identifies $750,000 of Property Misclassified as 39-Year Property
  12. 12. New Asset Classification – 5-Year Property</li></li></ul><li>In Addition to Accelerated Depreciation<br /><ul><li>Bonus Depreciation
  13. 13. Qualified Leasehold Improvements
  14. 14. Qualified Retail Property
  15. 15. Qualified Restaurant Property</li></li></ul><li>Costs Qualifying for Accelerated Depreciation by Building Type<br />Percentage of Construction Cost Qualifying for Accelerated Depreciation<br />
  16. 16. The Three Property Classifications<br />
  17. 17. Samples of Actual Accelerated Depreciation<br /> and Improved Cash Flow<br />Building Type Real Personal Land Increased<br /> Property Property Improvement Cash Flow Yr 1<br />Manufacturing 50% 40% 10% $900,400<br />Commercial Office 80% 10% 10% $90,580<br />Warehouse (owned 4 years) 72.5% 7.5% 20% $337,110<br />Tenant Improvement 70% 30% - $60,080<br />Bank 78% 12% 10% $54,200<br />Retail 73% 15% 12% $23,640<br />Apartment (owned 2 years) 65% 15% 20% $308,240<br />Auto Dealership 60% 15% 25% $109,600<br />Nursing Home (owned 3 years)64% 20% 16% $583,220<br />Grocery Store(Bonus Depreciation) 60% 25% 15% $1,299,440<br />Healthcare Facility 58% 27% 15% $443,400<br />Restaurant (Bonus Depreciation) 55% 45% - $79,410<br />Research Facility 40% 50% 10% $606,450<br />
  18. 18. The Concord Group Cost Segregation Study Provides<br /><ul><li>Independent Review of Costs
  19. 19. Identification of all Project Costs for either New Construction or Acquired Properties
  20. 20. Detailed Fixed Asset Breakdown of all Costs
  21. 21. All Supporting Tax References
  22. 22. IRS Form 3115 When Applicable
  23. 23. You may be able to start using the benefits of the study right away – even before filing your tax returns</li></li></ul><li>The Proposal Process is Straightforward and Simple<br />Information Requested:<br /><ul><li>New Construction</li></ul>- Site Plan and Construction Plans<br />- Breakdown of Construction and Soft Costs<br /><ul><li>Acquisition</li></ul>- Appraisal<br />- Closing Statements<br />- Drawings – if Available<br /><ul><li>Lookback – Properties Already Owned</li></ul>- Depreciation Schedules (In addition to the above)<br />
  24. 24. The Proposal Provides<br /><ul><li>No Cost Review of Plans and Costs
  25. 25. Associated Tax Benefits for the Study
  26. 26. Net Present Value of the Tax Savings
  27. 27. Fixed Professional Fees
  28. 28. If the Study does not Provide a Benefit Amount that far Exceeds the Professional Fees – We will not Suggest Moving Forward with the Study</li></li></ul><li>Why The Concord Group…..<br />“An accurate Cost Segregation Study may not be based on non-contemporaneous records, reconstructed data, or taxpayer’s estimates or assumptions that have no supporting records.”<br />“Cost Segregation Studies should be performed by qualified Individuals or firms, such as those employing personnel competent in design, construction, auditing and estimating procedures relating to<br />building construction.”<br />According to the IRS<br />
  29. 29. <ul><li>Cost Estimating
  30. 30. Cost Management
  31. 31. Owner Representation
  32. 32. Specialized Real Estate Services
  33. 33. Cost Segregation</li>

×