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Cost Segregation Studies www.costsegregation.com
What Is A Cost Segregation Study? ,[object Object],[object Object],[object Object]
Cost Segregation Buckets ,[object Object],39-year or 27.5-year Soft Costs 5-year 39-year or 27.5-year 7-year 15-year Cost Seg
Re-Allocation to Shorter Tax Lives ,[object Object],[object Object],[object Object],[object Object],[object Object]
Benefit:  Accelerated Depreciation Deductions
Benefit:  Accelerated Depreciation Deductions  ,[object Object],[object Object],[object Object],Note: Above table assumes 41% tax rate and 8% discount rate Property Reclassified from  39-Year Property to: Cash Flow Increase in  First 5 Years for  Every Dollar Reclassified Net Present Value Benefit (Life of Property) for  Every Dollar Reclassified 5-Year Property $0.34 $0.23 7-Year Property $0.27 $0.21 15-Year Property $0.10 $0.12
Summary of Benefits Tax savings assumes 41% tax rate and 8% discount rate Sample Auto Dealership ,[object Object],[object Object],[object Object],[object Object],[object Object],  Without Cost Segregation With Cost Segregation Total Net Increase in Benefits   39 Year 5 Year 7 Year 15 Year 39 Year Depreciable cost basis $7,000,000  $560,000  $  -  $840,000  $5,600,000    First 7 years depreciation $1,166,667  $560,000  $  -  $418,396  $  933,333  $  745,062  First 7 years income tax deferral     $  305,475  Net present value over the life of the project       $  257,467
Questions… KBKG, INC. COST SEGREGATION SPECIALISTS Contact Information Mitchell Lardner Director, Business Development  626.449.4225 x506 [email_address] www.kbkg.com www.costsegregation.com

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How Cost Segregation Studies Accelerate Tax Depreciation and Increase Cash Flow

Editor's Notes

  1. Note: The presentation has started. If you don't hear any sound...try loggin out and back in. You will need to have speakers on your computer. Please click yes to verify that you are in attendance and to ensure full CPE credit. (you must answer at least 6 of the 8 polling questions asked throughout this presentation) PPTS Good morning everyone! Thank you very much for joining us. My name is Scott Zarret and I’d like to welcome you to CS 201, which is a 2 hour discussion of case law, history and engineering , as it relates to costs segregation. Hopefully, all of you have had a chance to download and print the course materials so you can take notes as we move along. If you haven’t had a chance to download the materials, you can do so at any time during or after the class. If you check your chat box now, I’ll go ahead and paste in that link for you. https://kbkg.webex.com/kbkg/k2/e.php?AT=RINF&recordingID=3654807