Introduction to Cost Segregation and Fixed Asset Analytics

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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


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


How it Works


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


Case Studies


The Room We Are In


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


Fixed Asset Consulting

§ All buildings are required to be evaluated when changes are made based of “Units of Property”


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


Information and Documentation Requirements

§ Commercial Leases§ Construction Contracts § Landlord-Lender Agreements


Thank you.

Matt [email protected]

Steve [email protected]

Robert [email protected]

Introduction to Cost Segregation and Fixed Asset Analytics

Documents

Transcript of Introduction to Cost Segregation and Fixed Asset Analytics