Alternative Minimum Tax consequences are not a result of cost segregation. Nor is it is accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in the following matrix:

Accelerated depreciation increases the amount of depreciation taken in early years of ownership but triggers alternative minimum tax consequences. The alternative minimum tax consequences are severe enough that many investors avoid accelerated depreciation.

A cost segregation study delivers the benefits of more depreciation sooner without the unfavorable alternative minimum tax repercussions. There are no alternative minimum tax consequences out of this result. Cost segregation with straight-line depreciation increases depreciation by 50% to 100% during the early years of ownership without triggering alternative minimum tax penalties.

It produces tax deductions and reduces federal income taxes across the country and in every size market. Below are just a few examples of where you can generate meaningful tax deductions.

City:
New York, NY
Houston, TX
Washington, DC
San Francisco, CA
Memphis, TN Dallas/Ft. Worth, TX
Denver, CO
Phoenix, AZ
Orlando, FL
Philadelphia, PA
Cincinnati, OH
Madison, WI
McAllen, TX
Chicago, IL
Tulsa, OK
Austin, TX
Dayton, OH
Honolulu, HI
Stockton, CA
Boise, ID
Charlotte, NC
Durham, NC
San Jose, CA
Nashville, TN
Baton Rouge, LA
Buffalo, NY
Birmingham, AL
Indianapolis, IN
Manchester, NH
Oxnard, CA
This method produces tax deductions for virtually all property types.

Property Type:
Truck terminal
Airplane hangar
Retail
Apartments
Convenience store
Single-tenant retail
Movie theatre
Health spa
Self-storage
Bowling alley
Almost every industry, including the following, can generate cost-efficient tax deductions by using cost segregation.

Industry:
Textile product mills
Electronic and appliance stores
Truck transportation
Arts, Entertainment, and Recreation
Day care facilities
Furniture stores
Building supply dealers
Plastic and rubber products manufacturing
Chemical manufacturing
Computer and electronic manufacturing.

Tax reduction services include federal income taxes, state income taxes and property taxes. We do not prepare income tax returns. Instead, our advisors review your circumstances and suggest cost effective options to lawfully reduce your income tax liability.

Minimizing taxes includes regularly appealing property taxes and considering options for income tax reduction. In some cases, tax planning needs to occur years in advance. For estate tax planning, it may be prudent to start decades in advance. Some tax reduction options can be performed after the fiscal year has ended, including a fixed asset audit, cost segregation study and abandonment study.

O'Connor & Associates is a national provider of commercial real estate consulting services including federal tax reduction, cost segregation services, due diligence, renovation upgrading cost analyses, tax return review and apartment inspections.