For CPAs and others who prepare federal income tax reports - we offer a federal income tax saving opportunity for your clients who own investment or commercial property.
O’Connor & Associates routinely partners with the accounting profession in order to open multiple avenues of tax savings on commercial property to its clients. Our core service, and the foundation for many such opportunities, is the cost segregation approach to depreciating improved commercial property. In order to assist commercial property owners, we routinely request CPA involvement even before our services are engaged, and continue those lines of communication throughout our technical analysis and report issuance.
Click here to request a free estimate of tax savings for your client's commercial property.
O'Connor Distinctions:
- We do not outsource. All studies are conducted by our staff of real estate appraisers.
- Low fees - Usually a fraction of large firm prices. Our commercial property specialization, streamlined methodology and centralized production keep our costs low enough to do this -- without shortcutting tax saving opportunities.
- Portfolio assignments nationwide. Competitive pricing and our highly skilled staff attract multi-property owners. We conduct business nationwide, with offices in Houston, Dallas, Los Angeles, and Newport Beach.
- Results - Clients typically see savings equal 5 to 50 times the amount of our fee in Year One.
- Commercial Property taxes - O'Connor & Associates serves more than 40,000 property owners with an aggressive and effective approach.
The following table summarizes actual results generated through cost segregation reports prepared by O'Connor & Associates for commercial properties located throughout the country.
Property
Type |
Range on Year 1 Tax Savings
(100,000-500,000 sq. ft. property size)
|
Office
Apartment
Retail
Industrial |
$35,500 - $160,000
$19,240 - $96,200
$36,500 - $182,600
$10,800 - $54,000 |
At your suggestion - your clients may benefit greatly from O'Connor & Associates' modestly priced cost segregation reports. In fact, there is often a 50% to 100% increase in annual depreciation as a result of precisely measuring the five, seven and 15-year property.
Cost segregation affects both tax reduction and deferred payment of federal income taxes for commercial property. Some commercial property investors initially believe cost segregation only defers payment of federal income taxes. However, by converting the character of income from ordinary income to capital gains income, it also sharply reduces the income tax rate. The character of the income changes since the additional depreciation shields ordinary income from taxes. When the purchase price is allocated upon sale, most of the gain is typically allocated to land and long life property (instead of short-life property)
Rev Proc 2002-9, in combination with a change of accounting method, allows owners a spectacular additional amount of depreciation the first year. This makes cost segregation extremely attractive for owners of commercial property who pay substantial federal income taxes. It is possible to catch up all the depreciation in the first year without filing an amended return (481a adjustment rule), so there is little additional time or cost involved for your client.
We do NOT provide accounting or income tax services.
Call us if you want to discuss potential savings analyses for a particular property. Through your own selected referrals, we can mutually expand the value of services to your tax clients.
Contact Mike Olivares at 1-800-856-REAL(7325)
O'Connor & Associates - in business since 1974.
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