I know you have a lot going on right now, but I had to share this client experience with you.
I was meeting with a new client who owns their own building discussing their depreciation schedule. Their previous accountant had depreciated the entire building over 39 years and having met the guys from Cost Segregation Partners I knew we could do better.
I gave them the specifics and their analysis identified an additional $300k in additional depreciation in year 1 which continued into years 2 and 3. The cash flow benefit was astronomical and the client was delighted at the prospect (if not somewhat annoyed that his previous accountant had not discussed this with him).
If you have clients who have:
- Commercial property placed in service after Dec. 31 1986, with a cost basis of,
- At least $500K (excluding land) for an owned building, or
- Leased property with a minimum of $250k in leasehold improvements, and
- The entity is paying taxes,
Then you should give Cost Segregation Partners a call.
Speaking to Charles yesterday, he said there’s still time to reduce Estimated Quarterly Payments by leveraging Cost Segregation Benefits Projections. Charles said many CPA firms were using the Benefits Projections before engaging in the cost segregation project to help reduce their clients Extension/Estimated Quarterly Payments.
Charles shared a couple of other examples of recent cost seg work they had done for CPA firms:
Class A Office Building Placed in Service: June 2010
Cost basis: $20,484,823
2010 2011 2012
Additional depreciation: $ 1,687,936 $ 634,582 $ 444,035
Cash flow benefit: $ 725,812 $ 272,870 $ 191,051
Health Club (Leased) Placed in Service: July 2010
Cost basis: $566,000
Additional depreciation: $ 302,306 $ 29,847 $ 16,789
Cash flow benefit: $ 129,992 $ 12,679 $ 7,219
Urban Grocery Market Placed in Service: September 2006
Cost basis: $2,916,050
Additional depreciation: $ 414,799 $ 29,152
Cash flow benefit: $ 178,364 $ 12,535
From my own experience they turned the Benefits Projection Benchmark Report around quickly which we were able to leverage immediately. We even negotiated the initial analysis to be done for free for 2020 members.
If a client comes to mind, get in touch with Charles Sirro of Cost Segregation Partners. His phone number is 602-206-0522 and his email is Charles.firstname.lastname@example.org.