Engineer Finds $53,300 in Demolition Debris at Dealership

Temporary Tangible Property Regs are turning dumpsters of demolition debris into mounds of Tax Deductions.

What's in your dumpster?

CSSI is leading the nation in educating and strategizing with Tax Professionals to do the hard work of calculating and valuing the depreciation deductions of building components that were removed and thrown in the dumpster in past years.

The IRS has given little direction on how to get this done other than stating that cost segregation is an acceptable method.

This has caused a big problem for Tax Professionals that service the Auto Dealers.  Most Tax Professionals have not called their dealers to discuss this savings opportunity yet because they are looking for help to value the removed assets.

At CSSI, we already have an Asset Valuation Strategy in place to work with your CPA to meet the Tangible Asset Regs Disposition.

CSSI actually performed numerous Asset Valuation Studies on Auto Dealerships to help the owner and their CPA take advantage of the new Tangible Property Regs.

Here is an example of how CSSI assisted and Auto Dealer to reduce his taxes and maximize his cash flow. The auto dealer hired CSSI to conduct a Cost Segregation Study on a $1.56 million auto dealership.  The owners removed the whole front of the facility, showroom, bathrooms, kitchen and replaced it with a up to date Branding Wall and showroom to meet the manufacturer's branding specs. 

CSSI was able to get the client over $53K in cash by writing off the building components that were removed and an additional $216K in cash flow from accelerated depreciation thur the application of Cost Segregation to the remaining building and new additions.  Total additional cash flow to the dealer in the first 5 years was over $314K.

Here are a few more examples of past projects where the Tangible Asset Regs worked in a client's favor.

 

Dealer              Demolished Property Cost              Tax Benefit from Disposal

GMC                               $93K                                              $34K             

Toyota                             $173K                                            $62K

Chevrolet                         $232K                                            $81K

“What did it cost?” 

After taxes, the client typically receives a 10:1 to 20:1 return on his investment in the Cost Segregation and additional Asset Valuation Study. 

CSSI provides the "know how" and the "know what" to meet the Tangible Asset Regs for Disposition.

“Going over the fiscal cliff is not so bad when you are wearing a parachute.” 

Let CSSI determine "What's in your Dumpster" and help reduce your tax liabilities in 2012.

Contact your local CSSI rep for a free consultation or to receive a no-cost preliminary analysis illustrating the estimated tax savings and increased cash flow from an Asset Valuation Study or a full building Cost Segregation Study.