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1. The Nation’s Leader in Cost Segregation Services

2. AmCorp Management, Inc. has been
highlighted by the following media outlets
Plus many more…

3. AmCorp Management, Inc. is the Nation’s
most successful Tax Analysis Firm
What is Cost Segregation?
Cost Segregation is the process of identifying personal property assets
that are grouped with real property assets, and separating out personal
assets for tax reporting purposes. A cost segregation study identifies and
reclassifies personal property assets to shorten the depreciation time for
taxation purposes, which increases annual deductions, reduces current
income tax obligations, thus increasing income and cash flow.
P
Personal property assets i l d a b ildi ’ non-structural elements,
l t t include building’s t t l l t
exterior land improvements and indirect construction costs.
U.S. Treasury Department, 2004
“Cost Segregation is a lucrative Tax Strategy
that should be used in almost every major
purchase of Commercial Real Estate ”
Estate.”

4. AmCorp Management, Inc. is the Nation’s
most successful Tax Analysis Firm
Reality:
These large public corporations employ the best CFOs, Tax Accountants
and Bookkeepers, however every year they take their financial data to
Big4 Tax firms to have it reviewed by specialists in specific expense
areas.
areas It is a prudent thing to do however the problem for smaller
do,
companies is they cannot afford the 6 and 7 figure fees that go with it.
We provide mid-size and smaller firms with some of the same specialty
services without th h
i ith t the huge upfront f
f t fees. MMany of our examiners h
f i have
worked for and have been trained by the same Big4 firms.
Our Goal:
To provide smaller private property owners the
same facility expense management strategies
afforded to public companies by the Big4 tax firms
firms.

5. Our 1st Most Often Asked Questions
ISN’T MY ACCOUNTANT TAKING CARE OF THIS?
• A Cost Segregation Analysis includes an Engineering Study which requires
engineering expertise and experience in cost segregation fundamentals. Most
accounting firms do not have either.
IRS Cost Segregation guidelines requires a detailed engineering study and
analysis to fully qualify for all the available cost segregation tax advantages and
benefits. The Modified Accelerated Cost Recovery System (MACRS) is the current
method of accelerated asset d
th d f l t d t depreciation required b th U it d St t i
i ti i d by the United States income t
tax
code. Under MACRS, all assets are divided into classes which dictate the number
of years over which an asset's cost will be recovered.
Cost Segregation requires 3 knowledgeable parties
• A Qualified Engineer (MACRS)
• An Experienced Tax Accountant (MACRS and 3115)
• A Cost Segregation Specialist

6. Our 2nd Most Often Asked Questions
WILL THIS BE DISALLOWED BY THE IRS OR CAUSE AN AUDIT?
• No, the IRS has defined the process which guides Cost Segregation Studies
to take the proper deductions.
• N it would t k i
No, ld take improper d d ti
deductions t t i
to trigger an audit.
dit
None of our clients have ever had an audit due to one of our studies. The IRS has
D fi d th cost segregation process and endorsed it practice.
Defined the t ti d d d its ti
The IRS defined the process to include:
• 13 specific C t S
ifi Cost Segregation St d Elements
ti Study El t
• 9 specific Cost Segregation Report Elements
All which must be included in any IRS approved
engineering studies.
i i t di

7. The Cost Segregation Engineering Study
Tax Benefits of a Cost Segregation Engineering Study will:
1. Provide additional operating capital
2.
2 Minimizing federal tax obligations by accelerating depreciation deductions
3. It creates an audit trail, without it improper documentation of cost and
asset classifications can lead to an unfavorable tax adjustment.
4. Catch-Up Provision: Since 1996, taxpayers can capture immediate
retroactive savings on property added since 1987.
This presents additional cash flow p
p potential.
5. Additional tax benefits. Cost segregation can also
reveal new ways to reduce real estate and sales
and use taxes
taxes.

8. How It Works?
Engineering Survey and Study of an Office Building
(Identifying 5 & 7 Year Components)
Decorative Ceiling
Decorative Lighting
Decorative Non‐
Structural Wall
Coverings and Trim
Decorative Flooring
Items not mentioned:
Fire Protection Equipment,
Fire Protection Equipment,
Junction Boxes, Cabinets,
Signs, Equipment, Gas lines,
Electrical lines, Data Room
Equipment, Power Panels,
Conduit, Data Lines, HVAC
Conduit Data Lines HVAC
System, Cable Trays,
Improvements, etc…

9. Partial List of other Components that
can be Segregated and Re-Classified
• Communication • Emergency Fixtures
g y • Sinks Drains
• Systems Transformers • Waste Interceptors • Specific-Use Structures
• Hospitality Fixtures • Security Systems • Foundations
•TV Outlets & Wiring • Monitoring Systems • Mezzanines Stairs
• Distribution Panels • Conduit/Wiring • Platforms
• Distribution Wiring to Special Systems • Structural Steel
• High Voltage Switchgear • Flex Space • Task Lighting
• Data Jacks • Demountable Power Systems • Vents Beams Columns
• Miscellaneous Outlets • Shower/Deluge Fixtures • Gas Systems
• Emergency Power • Supply & Waste Systems • Vacuum Systems
•CComputer D t /P
t Data/Power • G /C
Gas/Compressed Ai
d Air •E h
Exhaust S t
t Systems
• Supply/Exhaust • Millwork Floor Coverings • Waste Interceptors
• Kitchens • Window Treatments • Audio/Visual Systems
• HVAC Systems • Wall Coverings • Buss Ducts
• Environmental Controls • Demountable Walls • Neutralization Basins
• Computer Environ. Control • Decorative Lighting • Humidity/Temp. Control
• Communications • Signage • Site Utilities
• Fire Protection Systems • Sidewalk & Curbing • Sewer
• Specialized Air Systems • Parking Lots & Curbing • Drainage Systems
• Filtration/Sensing • Landscaping Fencing • Outdoor Lighting
• Break/Coffee Stations • Swimming Pools • Much more…

10. Eligible Percentages by Property Type
Experience has shown that an average of 32% is typically eligible for Cost Segregation.

11. A Few Examples
Office Building - Purchased 2007 for $27,500,000 with 18 Units and 151,000 Square ft.
Asset Class Asset Life Original Allocation Allocation After C.S. Study
Personal Property 5 Year $0 0% $3,025,000 11%
Personal P
P l Property
t 7 Year
7Y $0 0% 0 0%
Land Improvements 15 Year $0 0% $3,300,000 12%
Real Property 39 Year $27,500,000 100% $21,175,000 77%
TOTAL ALL $27,500,000 100% $27,500,000 100%
Financial Gain From Accelerating Depreciation
Value of Property Accelerated $6,325,000
Percent of Property Accelerated 23%
Year 1 through 6 Tax Benefit
h h f $1,454,750
$

12. A Few Examples
Motel- Purchased 2005 for $10,925,000 with 32,000 Square ft.
Asset Class Asset Life Original Allocation Allocation After C.S. Study
Personal Property 5 Year $0 0% $2,294,250 21%
Personal P
P l Property
t 7 Year
7Y $0 0% 0 0%
Land Improvements 15 Year $109,250 1% $437,000 4%
Real Property 39 Year $10,815,750 99% $8,193,750 75%
TOTAL ALL $10,925,000 100% $10,925,000 100%
Financial Gain From Accelerating Depreciation
Value of Property Accelerated $2,731,250
Percent of Property Accelerated 25%
Year 1 through 6 Tax Benefit
h h f $682,912
$

13. The IRS has specific regulated requirements
for Cost Segregation Studies and Reports.
The IRS has 13 specific Cost
Segregation Study Elements
The IRS has 9 specific Cost
p
Segregation Report Elements
Many of today’s Cost
Segregation firms are not
g g
maintaining IRS guidelines for
their Cost Segregation Studies!

14. Who needs a Cost Segregation Study?
Anyone who:
1. Owns a building with over $1 000 000 i property value.
1 O b ildi ith $1,000,000 in t l
2. Has net income and is a profitable tax paying entity.
Qualifying Properties:
1 Purchased or Built their facility within the last 12 months
1. months.
2. Purchased or Built their facility since 1987.
3. Facility with Renovations or Additions.
4. Any Change of Ownership.
(Including Estates)

15. Tax Treatment
SIMPLE:
1. Catch-up d
1 C t h depreciation is taken in one year by filing IRS F
i ti i t k i b fili Form 3115
(Change of Accounting Method)
2. There a e NO a e ded tax returns to file.
e e are O amended a e u s o e
(File a new depreciation schedule)
3. Payments accompanying quarterly tax filings may be
immediately reduced
reduced.

16. Our Process
Provide you with a no-cost, no-obligation feasibility study
P id ith t bli ti f ibilit t d
This will:
• Identify your accelerated tax benefits
• Outline the Cost Segregation process
• Outline our fees
• Highlight your responsibilities
• Detail the timeline of the process

17. The Next Step
YOU
SUBMIT A LETTER OF UNDERSTANDING
PROVIDE COPIES OF THE FOLLOWING:
Purchase or build costs and data
Depreciation tax schedules
AmCorp Management
ANALYZE YOUR RECORDS
PROVIDE A FEASIBILITY STUDY
Upon approval of the Feasibility Study, we
will prepare a quality and IRS approved
Engineered Cost Segregation Study.