Practitioners Publishing Company

National Tax Advisory. July 6, 1999.

“Increasing your clients depreciation deductions for improved real property can reduce their taxable income without additional cash outlay. That not only helps their cash flow, it can also make [the CPA] look like a hero when you want to quantify the savings for them.

In addition, using qualified appraisers, architects or engineers to perform the analysis is preferred to a taxpayer (or taxpayers accountant who is not a qualified appraiser) doing the study and is more likely to withstand an IRS challenge to the allocations.”

“Duffy + Duffy’s cost segregation allows real property owners to accelerate depreciation for tax purposes by classifying a portion of the investment to personal property rather than real property In Jenne’s case about 34% of the building cost was classified to personal property and resulting in tax savings of approximately $195,000.”
Rose Jenne, Jenne Distributors, Inc.