AmCorp Management is an expense analysis firm that specializes in cost segregation studies to help clients accelerate depreciation deductions and reduce taxes. Through cost segregation, AmCorp identifies personal property assets like lighting, flooring and HVAC that are normally grouped with real estate. Reclassifying these assets to shorter recovery periods like 5 and 7 years increases annual tax deductions and cash flow. AmCorp has helped over 20,000 clients recover almost $2 billion in savings through this process. A typical cost segregation study can reclassify an average of 32% of property value to faster depreciation schedules, yielding substantial tax benefits.

1. Cost Segregation
Engineering Studies

2. AmCorp Management, Inc. is the Nation’s
most successful Expense Analysis Firm
most successful Expense Analysis Firm
A Company with a singular focus.
AmCorp Management, Inc. offers a RISK FREE analysis to
help companies locate and recover revenue that has been
lost through improper billing practices. Our auditing team’s
sole practice is to identify and secure overcharges
We have the highest recovery rate in the industry
We ha e the highest reco er rate in the ind str
AmCorp’s Examiner's and Auditors have
‐ 20+ years experience
20+ years experience
‐ helped over 20,000 clients
‐ recover almost 2 billion in savings

3. AmCorp Management, Inc. has been
highlighted by the following media outlets.
highlighted by the following media outlets
Plus many more…

4. AmCorp Management, Inc. is the Nation’s
most successful Expense Analysis Firm
most successful Expense Analysis Firm
What is Cost Segregation?
Cost Segregation is the process of identifying personal property
Cost Segregation is the process of identifying personal property
assets that are grouped with real property assets, and separating
out personal assets for tax reporting purposes. A cost segregation
study identifies and reclassifies personal property assets to shorten
the depreciation time for taxation purposes, which increases
h d i i i f i hi h i
annual deductions, reduces current income tax obligations,
thus increasing income and cash flow.
Personal property assets include a building’s non‐structural elements,
exterior land improvements and indirect construction costs.
U.S. Treasury Department, 2004
“Cost Segregation is a lucrative Tax Strategy
that should be used in almost every major
purchase of Commercial Real Estate.”

5. Cost Segregation Engineering Opportunities
What qualifies for Cost Segregation opportunities
– NNew construction
t ti
– Purchase of existing property
– Renovations or expansions
– Leasehold improvements
Leasehold improvements
– Existing property placed in service after 1986
(“look‐backs”)
– Real property stepped‐up through estate
Each $100,000 in assets reclassified from a 39‐year recovery
period to a five‐year recovery period results in approximately
$22,000 in net present value savings, assuming an 8% discount
ate and a 40% marginal tax rate.
Journal of Accountancy Copyright 2005 by the AICPA
Accountancy,

6. Current Status
Typical Depreciation schedules for different properties vary.
Class Property Description Method
39 – Year Nonresidential (Commercial) Real Property Straight Line
27.5 – Year
27 5 Y Residential Rental Property
R id ti l R t l P t Straight Line
St i ht Li
15 – Year Land Improvements 150 DB
15 – Year Qualified Leasehold Improvements Straight Line
(Extended from 12.31.05 to 1.1.08)
( )
7 – Year Office Furniture, Fixtures, Equipment, 200 DB
Certain Personal Property
5 – Year Cars, Trucks, Computer related equipment, 200 DB
Certain Personal Property

7. Cost Segregation Reclassification Opportunities
Experience has shown that an average of 32% is typically eligible for Cost Segregation.

8. The Reclassification Process
The IRS wrote the Standard:
• Mandates 3rd party study
Mandates 3rd party study
• Recommends engineering based studies
• Enforces Audit Techniques Guide of 2004
Enforces Audit Techniques Guide of 2004
• Regulates compliance to Circular 230
SIMPLE TAX TREATMENT:
SIMPLE TAX TREATMENT:
1. Catch‐up depreciation is taken in one year by filing IRS Form 3115
(Change of Accounting Method)
2. There are NO amended tax returns to file.
f
(File a new depreciation schedule)
3. Payments accompanying quarterly tax filings
may be immediately reduced.

9. What Could A Engineering Cost
Segregation Mean To You.
Segregation Mean To You.
The New York Times
By ignoring generous IRS guidelines when establishing
depreciation schedules, 90% of real estate investors
are unintentionally overpaying t
i t ti ll i taxes.” ”
The Journal of Accountancy:
“Each $100,000 in assets reclassified from a 39‐year
recovery period to a five‐year recovery period results
in approximately $22,000 in net present value
savings, assuming an 8% discount rate and a
40% marginal tax rate ”
rate.

10. Here Is How It Works
Engineering Survey and Study of an Office Building
(Identifying 5 & 7 Year Components)
Decorative Non‐
Structural Wall
Coverings and Trim
Decorative Ceiling
Decorative Lighting
Decorative Flooring
Items not mentioned:
Fire Protection Equipment, Junction Boxes, Cabinets, Signs, Equipment, Gas lines, Electrical lines,
Data Room Equipment, Power Panels, Conduit, Data Lines, HVAC System, Cable Trays, Improvements,
etc…

11. Partial List Of Other Components That Can Be
Re Classified To Accelerate Tax Benefits
Re‐Classified To Accelerate Tax Benefits
• Communication • Emergency Fixtures • Mezzanines Stairs
• Systems Transformers • Waste Interceptors • Platforms
• Hospitality Fixtures • Security Systems • Structural Steel
• TV Outlets & Wiring • Monitoring Systems • Task Lighting
• Distribution Panels • Conduit/Wiring for • Vents Beams Columns
• Distribution Wiring specialty Systems • Gas Systems
• High Voltage Switchgear
High Voltage Switchgear • Flex Space
Flex Space • Vacuum Systems
Vacuum Systems
• Data Jacks • Demountable Power Systems • Exhaust Systems
• Miscellaneous Outlets • Shower/Deluge Fixtures • Waste Interceptors
• Emergency Power • Supply & Waste Systems • Audio/Visual Systems
• Computer Data/Power • Gas/Compressed Air • Buss Ducts
•SSupply/Exhaust
l /E h t • Mill
Millwork Floor Coverings
k Fl C i • N t li ti B i
Neutralization Basins
• Kitchens • Window Treatments • Humidity/Temp. Control
• HVAC Systems • Wall Coverings • Site Utilities
• Environmental Controls • Demountable Walls • Specialty refrigeration units
• Computer Environ. Control • Decorative Lighting • Sewer
• Communications • Signage • Drainage Systems
• Fire Protection Systems • Sidewalk & Curbing • Outdoor Lighting
• Specialized Air Systems • Parking Lots & Curbing • Much more…
• Filtration/Sensing • Landscaping Fencing
reak/Coffee Stations
• Break/Coffee Stations • Swimming Pools
Swimming Pools
• Sinks Drains • Foundations
• Specific‐Use Structures

12. A Few Examples Of How Our Clients Benefited
Office Building –
Purchased 2007 for $27,500,000 with 18 Units and 151,000 Square ft.
Asset Class Asset Life Original Allocation Allocation After C.S. Study
Personal Property 5 Year $0 0% $3,025,000 11%
Personal Property 7 Year $0 0% 0 0%
Land Improvements 15 Year $0 0% $3,300,000 12%
Real Property 39 Year $27,500,000 100% $21,175,000 77%
TOTAL ALL $27,500,000 100% $27,500,000 100%
Financial Gain From Accelerating Depreciation
Value of Property Accelerated $6,325,000
Percent of Property Accelerated 23%
Year 1 through 6 Tax Benefit $1,454,750

13. A Few Examples Of How Our Clients Benefited
Motel ‐
Purchased 2005 for $10,925,000 with 32,000 Square ft.
Asset Class Asset Life Original Allocation Allocation After C.S. Study
Personal Property 5 Year $0 0% $2,294,250 21%
Personal Property 7 Year $0 0% 0 0%
Land Improvements 15 Year $109,250 1% $437,000 4%
Real Property 39 Year $10,815,750 99% $8,193,750 75%
TOTAL ALL $10,925,000 100% $10,925,000 100%
Financial Gain From Accelerating Depreciation
Value of Property Accelerated $2,731,250
Percent of Property Accelerated 25%
Year 1 through 6 Tax Benefit $682,912

14. Who Needs A Cost Segregation Study?
Anyone who:
1. Owns a building with over $1,000,000 in property value.
2. Has net income and is a profitable tax paying entity.
Qualifying Properties:
1. Purchased or Built their facility within the last 12 months.
2. Purchased or Built their facility since 1987.
3. Facility with Renovations or Additions.
4. Any Change of Ownership.
(Including Estates)

15. The Process!
Building Owner
‐ Submit a Letter of Understanding
‐ Submit a copy of Depreciation Schedules (If Required)
Submit a copy of Depreciation Schedules (If Required)
‐ Submit a Build or Purchase Statement
AmCorp Engineering
‐ Create a detailed Engineering Study Estimate
‐ Deliver the Engineering Study Estimate to building owner
Building Owner
g
‐ Authorize Engineering Study
‐ Provides additional documentation
AmCorp Engineering
AmCorp Engineering
‐ Engineer will schedule a visit to walk through facility
‐ Engineer prepares and delivers to building owner a complete
Cost Segregation Engineering Study