Post on 02-Mar-2023
© 2011 CBRE | CONFIDENTIAL & PROPRIETARY | Page 1
Introduction to Cost Segregation and Fixed Asset Analytics
Matt Rader, LEED APManaging Director, CBRE
Steve HodgesDirector, PwC
Robert OlsonPartner, Dorsey & Whitney LLP
August 8, 2016
© 2011 CBRE | CONFIDENTIAL & PROPRIETARY | Page 2
What We Do for You
§ Provide you and your clients on average $52,000 in tax savings for every $1,000,000 of spend
§ More than just cost segregation§ Tax Advantaged Design®§ Help reduce TI burden through tax advantaged leases§ Give better fixed asset records for future savings
© 2011 CBRE | CONFIDENTIAL & PROPRIETARY | Page 4
Case Studies
§ Acquired Office Building§ Spend: $24,180,000§ First Year Savings: $269,863§ First 6 Years Combined Savings: $1,174,919§ Life of Property: $896,855§ Benefit-to-Fee Ratio: 62:1
© 2011 CBRE | CONFIDENTIAL & PROPRIETARY | Page 9
Legal Framework
§ Tax Reform Act of 1986§ MACRS
§ Scott Paper Company - Unitary Concept§ Morrison Inc. – Decorative Lighting & HVAC§ Metro National – Demountable Partitions§ Whiteco Industrial – Permanency Concept§ Hospital Corporation of America – ITC Rules§ Revenue Procedures§ IRS Audit Techniques Guide§ Tangible Property Regulations
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Fixed Asset Consulting
§ All buildings are required to be evaluated when changes are made based of “Units of Property”
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Disposed “Units of Property” Case Studies
§ 12 Floor Office Building § Demoed 4 floors§ Immediate Write-Off $2,846,675§ Tax Savings: $1,049,946§ Benefit-to-Fee Ratio 36:1
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Information and Documentation Requirements
§ Commercial Leases§ Construction Contracts § Landlord-Lender Agreements