| Tax tips and tax help to assist taxpayers by | | | | knowledgeable in all areas. Cost segregation |
| describing options for tax reduction and tax | | | | produces tax deductions and reduces federal |
| cuts through lawful tax deductions. Tax | | | | income taxes across the country and in every |
| deductions contribute to national prosperity | | | | size market. Below are just a few examples of |
| by providing capital to business. Tax | | | | cities where cost segregation generates |
| deductions reduce taxable income. A $100,000 | | | | meaningful tax deductions. City: |
| tax deduction reduces federal income tax by | | | | |
| $35,000 ($100,000 X 35%) assuming a 35% | | | | - New York, NY |
| income rate. Options for increasing business | | | | |
| tax deductions include revising depreciation | | | | - Houston, TX |
| schedules, reviewing fixed asset listings, | | | | |
| casualty losses, bad debts, and charitable | | | | - Hartford, CT |
| contributions. Real estate depreciation | | | | |
| offers substantial opportunity for increasing | | | | - Las Vegas, NV |
| tax deductions. Most depreciation schedules | | | | |
| are established by simply separating land and | | | | - Memphis, TN |
| long-life improvements. This simple approach | | | | |
| is lawful but sharply understates lawful | | | | - Philadelphia, PA |
| depreciation. About 20-40% of improvements | | | | |
| for most properties are short-life items. | | | | - Orlando, FL |
| Short life items can be depreciated over 5, | | | | |
| 7, or 15 years. There are about 130 | | | | - Phoenix, AZ |
| short-life items that have been determined by | | | | |
| legislation, tax court decisions and IRS | | | | - Atlanta, GA |
| rulings. Real estate depreciation can | | | | |
| typically be increased by 50-100% for the | | | | - Bridgeport, CT |
| first 5-7 years of ownership by obtaining a | | | | |
| cost segregation study. A cost segregation | | | | - Worcester, MA |
| study precisely values up to 130 components | | | | |
| of real estate that can be valued as | | | | - Akron, OH |
| short-life property. By obtaining a cost | | | | |
| segregation study, it is possible to obtain a | | | | - Harrisburg, PA |
| windfall of tax deductions by "catching-up" | | | | |
| previously under-reported depreciation. This | | | | - Salt Lake City, UT |
| one-time "catch-up" can occur in the first | | | | |
| tax return filed after the cost segregation | | | | - St. Louis, MO |
| study is performed without filing any amended | | | | |
| tax returns. Reviewing fixed asset listings | | | | - Portland, OR |
| (of business personal property) can generate | | | | |
| a meaningful amount of tax deductions. They | | | | - Scranton, PA |
| often include items that should have been | | | | |
| expensed, which have been sold or thrown away | | | | - Greenville, SC |
| or which have an excessive depreciation life. | | | | |
| Items that should have been expensed include | | | | - Bakersfield, CA |
| operating expenses (sometimes included by | | | | |
| error) and maintenance or repairs (which was | | | | - Madison, WI |
| necessary but did not increase the life of | | | | |
| the assets or component.) Section 179 allows | | | | - Chicago, IL |
| business to use up to $108,000 of 2006 | | | | |
| capital expenditures as tax deductions. | | | | - Fresno, CA |
| Confirm you are not capitalizing assets that | | | | |
| could be claimed as a tax deduction. Casualty | | | | - Riverside, CA |
| losses also offer opportunity for tax | | | | |
| deductions. For a casualty loss, you can | | | | - Albany, NY |
| deduct: 1) the market value immediately | | | | |
| before the casualty less 2) the market value | | | | - Indianapolis, IN |
| immediately after the casualty less the | | | | |
| amount covered by insurance. The portion that | | | | - Birmingham, AL |
| is not intuitive is: the market value after | | | | |
| the casualty is much less than the value | | | | - Ft. Lauderdale, FL |
| before? plus the cost to renovate. Other | | | | |
| factors which can and should be considered | | | | - Baton Rouge, LA |
| for tax deductions are: lost rent/usage, | | | | |
| stigma (in some cases), construction | | | | - Augusta, GA |
| management, construction risks, and | | | | |
| entrepreneurial effort. Bad debts are a | | | | - Honolulu, HI Cost segregation produces tax |
| subjective matter. Judgment is required to | | | | deductions for virtually all property types, |
| accurately estimate the amount that should be | | | | including the following: Property Type: |
| claimed as a tax deduction. If bad debts have | | | | |
| not been examined carefully for several | | | | - Medical facility |
| years, they may offer a meaningful tax | | | | |
| deduction opportunity. (This applies to | | | | - Shopping mall |
| companies who utilize accrual accounting. | | | | |
| Companies who use cash accounting can't claim | | | | - Restaurant |
| a tax deduction for bad debt since they never | | | | |
| recognized the revenue.) Do well by doing | | | | - Country club |
| good. You reduce taxes in several ways when | | | | |
| making charitable contributions. For example, | | | | - Fast food restaurant |
| you purchased land 10 years ago for $200,000, | | | | |
| and it is now worth $1,000,000. However, you | | | | - Power center |
| now realize you will never use the land for | | | | |
| the intended purpose. You can donate the land | | | | - Hotel |
| to a qualified charitable organization and | | | | |
| take a tax deduction for $1,000,000. However, | | | | - Car wash facility |
| you do not have to pay capital gains taxes on | | | | |
| the appreciation. Tax deductions sometimes | | | | - Convenience store |
| seem arcane and complicated. However, a | | | | |
| knowledgeable team of advisors from several | | | | - Health spa Almost every industry, including |
| fields can reduce your federal income taxes. | | | | the following, can generate cost-efficient |
| The complexity of the tax code makes it | | | | tax deductions by using cost segregation. |
| difficult for any one personal to be | | | | |