Engineer Finds $331,000 in Demolition Debris

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 cost segregation is an acceptable method.  At CSSI, we already have an Asset Valuation Strategy in place to work with you and your clients to meet the Tangible Asset Regs Disposition.

CSSI actually performed its first Asset Valuation Study early last year to help a client and CPA take advantage of the coming Tangible Property Regs.

The client hired CSSI to conduct a Cost Segregation Study on a 40 year old high-rise office building purchased five years ago. 

In surveying the building and follow up discussions with the owner, CSSI discovered that the 40 year old fresh water piping system had to be removed last year due to major leakage and fear of catastrophic rupture. 

There was significant removal of walls and flooring to facilitate the access the old piping system and install new copper piping and supporting pumps.  The final cost was around $2.4 million.

In addition to the savings generated from the traditional Cost Segregation Study, the value of the old piping was calculated to be around $920,000 in net taxable depreciable value to write down.

At a 36% tax rate, it resulted in $331,000 savings resulting from the disposition to apply to the client's 2012 return.

CSSI supplied a complete report to the CPA with all the necessary documentation.  CSSI can also assist Tax Professionals with the completion of the 3115 forms to make it a turn-key project.   

“What did it cost?” 

After taxes, the client received a 32:1 return on his investment in the Cost Segregation and additional Asset Valuation Study. 

It was CSSI that brought these new deductions to everyone’s attention and provided the expertise to identify and value existing and removed building components and produce an IRS defined engineering-based Cost Segregation and Asset Valuation Studies for Tax Professionals to apply. 

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

CSSI provides a proven methodology to turn a complex calculation into a simple process for Tax Professionals and a great opportunity to reduce taxes for the client.

“Going over the fiscal cliff is not so bad when you are wearing a parachute.”  Surprise your clients with unexpected windfall to cushion the landing.  


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.