Your challenges:
Traditional accounting will not capture the full range of costs qualifying for short lives under the tax law. In managing fixed assets, the tax challenges are to:

• Maximize your deductions and minimize your tax
• Stay current with changing tax laws
• Provide rational accounting records and IRS documentation

Our approach:
Our engineering professionals work in-house with a team of experienced CPAs, tax specialists, and business advisors to optimize your depreciation options. We deliver reports that provide easy to use data for your tax planning.

A properly prepared and documented cost segregation study provides cash flow savings and lower taxable income. For example, the present value of tax savings realized from properly classifying $100,000 of 39-year real property to 7-year personal property are as follows:

	7-Year Life*	39-Year Life*	Tax Savings*
Present value of tax savings from depreciation deduction at 8% discount rate (rounded)	$31,800	$12,200	Total value of our service: $19,600
Tax savings realized from depreciation deduction in the first two years (rounded)	$14,300	$1,500	Value of our service after year two: $12,800

*Note: The above calculations assume the taxpayer is in the 40% tax bracket and the property is placed in service in the sixth month of the taxable year. It also assumes taxpayer deductions are not limited by the passive loss rules, basis rules, or alternative minimum tax. Tax savings on assets eligible for special depreciation allowances may be higher than that shown above.