Business owners, you need to see this!

1. Commercial
Property Benefit
Learn how a Cost
Segregation study can
improve your cash flow and
lower your taxes

2. What Is Cost Segregation?
 Basically, cost segregation reclassifies real
and personal property construction costs
in a commercial property
 Historically, most if not all of a building was
classified as real property and
depreciated over 39 years.
 Personal property can be depreciated
over as little as 5-7 years, dramatically
improving cash flow

3. How Does This Get Done?
 With a properly done Cost Segregation
study, the individual characteristics of the
components of your building are broken
out, or segregated, from the whole.
 Why? Because some components, like
carpeting, asphalt, specialty wiring etc
wear out long before 39 years. It doesn’t
make sense to depreciate them over 39
years if they only have a five or seven
year lifespan.

4. What is the Benefit?
 Ifyou win the lottery, would you take the
prize over 30 years or upfront?
 Money now is worth more to you than
money 30 years from now.
 Cost-seg accelerates the depreciation of
your building for tax purposes, reducing
your taxes, while utilizing the “look back”
provision can generate a sizeable IRS
refund upfront.

5. Will This Cause an Audit?
 In 1997, a landmark case with Hospital
Corp of America took place in which the
IRS admitted that cost segregation was a
valid process.
 In 1999 they issued a Legal Memorandum
which said that a properly done “cost-
seg” study would not be contested.
 In 2004 the IRS reaffirmed the strategy by
issuing the Cost Segregation Audit Guide.

6. How Much is the Benefit?
 The amount of the benefit is based on a
number of factors, such as the number of
years the building has been owned, if there
have been any recent renovations, the
purpose of the building, and other factors.
 In general, for every $1 million of cost that can
be re-classified, the average benefit is
approximately $150-160,000
 We have saved clients over $152,000,000

7. How Much is this Going to
Cost?
 Inthe past, because of the technical and
engineering requirements for a successful
cost segregation study, only the biggest
companies were able to hire qualified
consultants with huge upfront costs.
 Now, firms like ours have specialists who
do nothing but “cost-seg” and are able to
do it for a fraction of the cost than in the
past.

8. Low Cost, Guaranteed Results
 Our guarantee to you is that if we determine
that you are not going to benefit from a cost
segregation study, there is no charge to you.
 If we do find a benefit to you, and 90% of the
time we do, our fee is guaranteed to be a
small fraction of the benefit. Fee will be
quoted as a fixed amount, but will not
exceed 10% of benefit.
 Fee quoted upon completion of initial analysis

9. Who Benefits From Cost Seg?
 Must be a commercial property- hotels,
restaurants, apartments, nursing homes,
automobile dealers, manufacturing all
good prospects for cost segmentation
benefits
 Must be a “For-Profit” entity
 Target Building cost: $1-10 million
 Not planning to sell within 24 months at
minimum, preferably not within 5 years

10. Why Haven’t I Heard About
This?
 CPA’s in general only advised of this since
2004. Some still think of old disallowed rules
regarding component depreciation.
 CPA’s not generally engineers as required
 Engineering based studies required per IRS
guidelines. Our consultants are experienced
engineers and specialize in cost
segmentation.
 Engineers generally not good salespeople!

11. Leaving Money on The Table?
 Ifyou haven’t looked into doing a
cost segmentation study for your
business, you are probably paying
too much in taxes.
 You still have to pay taxes, but you
don’t need to leave a tip!

12. Make an Informed Decision
 Contact us to see how this would impact
your business
 Learn why you should or should not do a
study
 Make an informed decision. We welcome
the participation and partnership of your
CPA

13. How We Work With Your CPA
 We partner with your CPA in this process
 We provide your CPA precise information to
maximize your benefits according to the law
 We do the engineering study that is required
by IRS guidelines then work with your CPA to
complete the proper forms such as the Form
3115 to maximize your refund
 Make sure study passes IRS engineering
guidelines

14. Next Steps
 Contact us to request a study
 We review initial information provided to
determine feasibility
 Complete study performed and fee
charged
 Implement with CPA to apply to your
financials
 See the improved financial results!

15. Contact Information
 Contact me at
 timrobertson@robertsonadvisorsgroup.com
 619-403-6622
 Initial
information can also be completed
on my website:
www.RobertsonAdvisorsGroup.com