Act now for 2006 tax year benefits -- and 2007 capital and cash planning!

Advisory bulletins for those involved with real estate -- owners, investors, REITs, CFOs, accountants, lenders, brokers and attorneys.

Cost Segregation - Can you "catch up" under-reported depreciation? Cost segregation is a specialized and accurate method to calculate depreciation for real estate. Most real estate depreciation schedules separate land from long-life improvements. Land is not depreciable, while long-life improvements are depreciated over 27.5 years for rental residential property and 39 years for commercial property. Investment real estate typically includes many of the more than 130 IRS-defined short-life components, which can be depreciated over 5, 7 or 15 years. Separating the short-life components can increase the amount of depreciation by 50 to 100% over the first five years of ownership. If you have inaccurately depreciated real estate and under-reported depreciation deductions, it is possible to correct the error. Real estate owners can "catch-up" depreciation previously underreported for real estate purchased or built after December 31, 1986. The depreciation which was understated in prior years can be reported the year a cost segregation study is performed. In most cases, it is not necessary to amend prior year tax returns since the additional depreciation may be reported using form 3115. Obtaining a cost segregation study and "catching up" previously under-reported depreciation can generate meaningful tax savings. When using the powerful combination of cost segregation and "catch up" depreciation, it is possible to generate year-one federal income tax savings up to 50 times to 100 times the fees for the cost segregation study. ť Get a complimentary estimate of tax savings on your property ť Visit our NEW source for the latest up-to-date commercial real estate news! Please send me periodic real estate information. O'Connor & Associates -- Your Key to Real Estate Value Corporate Office: 2200 North Loop W., Suite 200 Houston, TX 77018 1-800-856-7325 Dallas * Houston * Los Angeles * Newport Beach If you would like to be removed from this list and receive no future real estate information, click here to unsubscribe.	Cost Segregation Benefits Convert ordinary income to capital gains income Defer federal income taxes Effective for properties with a cost basis as low as $500,000 "Catch-up" under-reported depreciation without filing amended income tax returns Free preliminary analysis About O'Connor & Associates O'Connor & Associates is a real estate consulting services firm, conducting business nationwide. Our professional staff in Houston, Dallas, Los Angeles and Newport Beach is available to help you with your tax, business and real estate valuation matters, including cost segregation studies, commercial real estate appraisals, commercial property tax reduction and litigation support. Hire O'Connor & Associates to save thousands through federal and ad valorem tax reduction. Visit us at www.poconnor.com.