1. Cost Segregation Working with CPA & Tax Professionals

2. Business with CPAs n Need a solid understanding of Cost Segregation -If not, could lose their trust quickly n Need to understand personality traits typically associated with CPAs -Enhances communication

3. CPA n Client says his CPA has already performed Cost Segregation -IRS specifically asks for a third party engineering firm -Engineered study provides best economic results -IRS Quote: “Cost segregation is a factually intensive determination that is based on complex tax law and engineering analysis”

4. 3115 Form n Change in Accounting Form -Only needed for properties owned for over 1 year -States that you intend to change from old method of depreciation to accelerated depreciation using cost segregation

5. 3115 Form n Catch Up Depreciation -Allows taxpayer to recalculate depreciation from the first day placed in service and take additional depreciation in the first year of application -Difference between what was deducted and what could have been deducted is knows as an IRS Section 481(a) adjustment

6. Net Operating Loss n Allowable tax deductions are greater than taxable income resulting in negative taxable income n Business owner can “carry back” loss 2 years

7. Passive Loss n IRS states that passive losses can only be offset by passive income n Exception: Rental real estate losses up to $25,000 may be deducted for individuals whose gross income is less than $100,000.

8. Real Estate Professional n Taxpayer spends the majority of his time in rental real estate -More than ½ personal services related to real estate business -Taxpayer spends more than 750 hours of material participation in real estate business -Losses are no longer passive

9. Grouping of Activities n If businesses form an economic unit, C and S Corporations and Partnerships/LLCs can group them into a single activity n Ex. – Owner holds building in one LLC and operations of business in a separate LLC

10. Personality Traits n “C” Personality -Perfectionist – prefer a factual approach Respect precise & logical explanationsRespect precise & logical explanations -Strengths – accuracy through detailed research -Weakness – fear criticism Leads to a fear of changeLeads to a fear of change

11. CPA Partnerships n Provide access to multiple commercial property owners n Client trust has already been established

12. CPA Partnerships n Marketing to CPAs -CPA/Tax Professional Conventions -Visiting Local CPA Firms -Connect with CPA through current clients -Market to your current CPA

13. CPA Partnerships n CPA BIQ System -Building Investment Quotient -Allows CPA instant access to analysis -You are sent an e-mail each time an analysis is created

14. CPA Partnerships n CPA BIQ System -You can create a user name and password for CPA or tax professional -CPA or tax professional can log on and create an analysis for their clients -You will receive an e-mail alerting you an analysis has been created

15. CPA Partnerships n Creates Revenues for CPA -Option to add additional fees -Creates added service for CPA firm -Differentiates themselves for the competition