Title: Reduce your tax and improve your cash flow
1T a x R e d u c t i o n E x p e r t s
REDUCE YOUR
Taxes Improve your Cash ?ow with Cost
Segregation!
2What is Cost Segregation?
An IRS-de?ned approach for depreciating
commercial properties thereby reducing your
federal incomes taxes. Cost Segregation reduces
and defers state and federal income taxes. It
reduces income taxes by converting ordinary
income to capital gains and defers income taxes
by increasing depreciation in the early years of
ownership. It is a technical process where
short-life items are separated from long life
items. Cost Segregation typically doubles or
triples depreciation during the ?rst ?ve years
of ownership.
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3What kind of properties qualify for a cost
segregation study?
Cost segregation can be performed for most
commercial properties Real property acquired or
built after 1986 Commercial for pro?t venture
Depreciable basis of at least 500,000
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4Bene?ts of the study
01 Increase in cash ?ow
02 Reduction in current tax liability
03 Deferral of Federal Income Taxes
04 Ability to recapture past years
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5Is Cost Segregation Right For You?
Cost segregation makes sense if you have
substantial taxable income and can use the
additional depreciation to reduce income taxes.
For a person with no income, the additional
depreciation simply provides a net loss carry
forward (indefinite now) but no immediate
benefit.
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6Calculate Your Potential Savings!
Use our Cost Segregation Calculator and get an
estimate of your ?rst year and ?ve years of tax
savings. Get a free property analysis including
a step-by-step guide on how to claim your
savings.
T a x R e d u c t i o n E x p e r t s w w w . e
xper t c ostseg. c om