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.

Act now for 2006 tax year benefits -- and 2007 capital and cash planning! Tax Rule No .1: Don’t cheat the IRS. But that doesn’t mean you should cheat yourself. Take every legal tax deduction you can. Even after the fiscal year ends, and business owners of improved commercial real estate are seeking tax deduction opportunities, one popular option is to conduct a cost segregation study. Cost segregation will identify any item that can be depreciated over a shorter period of time. These studies can result in additional depreciation for properties including new buildings, renovations of existing buildings, leasehold improvements and commercial real estate purchases after 1986. Cost segregation allows business owners to increase depreciation and generate more tax deductions. Cost segregation involves separating up to 135 components of real estate that depreciate faster than the building itself. Taxpayers can depreciate many components of real estate using a five-, seven-, or 15-year recovery period. Within permissible bounds, there is a huge tax savings opportunity for depreciating this property accurately. Examples of these categories include items such as carpeting, certain fixtures, window treatments, site improvements and some wall coverings. Cost segregation typically apportions about 20% to 40% of the improvement cost basis to short-life property. Short-life property depreciates over a shorter life period and provides a higher level of tax deductions annually during the first 15 years of ownership. Most business owners increase depreciation by 50% to 75% by obtaining a cost segregation analysis. » Get a complimentary estimate of tax savings on your property » 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 costs 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.