Benefits of Cost Segregation Studies.

1. KIMMEL CONSULTING LLC
Cost Segregation Study
October 15, 2010

2. Agenda
• Introductions
• About Us
• What is Cost Segregation
– Prior to Study
– After Study
• Process Overview
• What Types of Real Estate
• Summary / Q & A

3. About Us
• Kimmel Consulting LLC (KCLLC) is a full service Accounting Firm located in
Noblesville, IN
– Mission: Our goal is to provide superior accounting services to businesses, non
profits & individuals
– Services:
» Business Organization & Planning
» Individual Tax Reporting
» Tax Services – Businesses, Non-Profits, & Individuals
» Payroll Services
» Mergers & Acquisitions
» Business Valuations
» Bookkeeping / QuickBooks Consulting
» Cost Segregation Studies

4. What is Cost Segregation
• Cost segregation is a proven tax deferral strategy, based on
accepted authoritative guidance, that enables you to effectively
frontload depreciation deductions into the early years of
ownership. This is accomplished by segregating the components
of the facility into the allowable asset classifications and recovery
periods for federal and state income tax purposes. A taxpayer can
use cost segregation when constructing a building or when buying
an existing one. It can even be used if a structure was constructed
or acquired several years earlier.
• The end result is significantly shorter lives for many of the facilities'
components. The shorter lives allows the component's cost to be
recovered over a 5, 7, or 10 year period rather than the 39-year life
for commercial and 27.5 year life for residential properties.
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5. Cost Segregation – Prior to Study
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Building (39 Yr. Depreciation)
• Structural building
• Walls
• Standard Floor
• Roof
• Standard windows
• Fire Protection
• Phones & Cabling
• Computers & Cabling
• Landscaping
• Specialty Machinery / MFG Equipment
• Specialty Floor (lifts, modifications, etc.)
• Parking Lot
• Site Excavation

6. Cost Segregation – After Study
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Building (39 Yr. Depreciation)
• Structural building
• Walls
• Standard Floor
• Roof
• Standard windows
• Fire Protection (Code)
Personal Property (5 & 7 Yr. Depreciation)
• Phones & Cabling
• Computers & Cabling
• Specialty Machinery / MFG Equipment
• Specialty Floors (lifts, modifications, etc.)
• Fire Protection (Beyond Code)
Personal Property (15 & 20 Yr. Depreciation)
• Landscaping
• Parking Lot
• Site Excavation

7. Accountant
Process Overview
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Construction
Specialist
IRS Savings

8. What Kind of Real Estate Qualifies?
• Any structure used for business or as rental property, is eligible for the benefits
of Cost Segregation. The graph below represents the percentages of project-
related construction costs that could be reclassified from either 27.5 or 39-year
real property to 5, 7, or 15-year property.
• Other projects benefiting from Cost Segregation are shopping malls, airports,
sports facilities, driving ranges, resorts, health care facilities, industrial buildings,
auto service centers and more.
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9. Closing Comments
• Every $1,000,000 worth of property reclassified from 39-
year property to five-year property has a present value of
approximately $200,000.
• Kimmel Consulting LLC has performed numerous cost
segregation studies which have resulted in significant tax
savings for clients. Whether you have purchased an
existing facility or constructed a building from the ground
up. Owning real estate represents a significant
investment for any business or investor.
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10. Contact Information
• For more information, please contact us.
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