ME158-WEB - Purchase Price Allocation and Cost Segregation Studies: A Team Approach
Category: Machinery & Technical Specialties
Continuing Education: 2
Registration
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Webinar Course Description
A Cost Segregation Study dissects the construction cost
or purchase price of real property that would normally depreciate over a long
period (27.5 & 39-years) and reallocates costs into shorter tax lives of 5,
7 or 15-years. This two-hour intermediate course will provide background
information, depreciation rules, and how a cost segregation study is performed in conjunction with purchase price allocation valuations.
Recommended Pre-Reading
Valuing Machinery and Equipment: The Fundamentals of
Appraising Machinery and Technical Assets. 4th Edition - Chapter 17 Cost
Segregation
Course Audience
MTS, ARM, and BV appraisers
Instructor Information
Walter O'Connell , ASA | Walter O'Connell Tax Services, LLC
Walter O’Connell is the Founder and Managing Director of Walter O'Connell Tax
Services, LLC (“WOTS”), and is responsible for a variety of projects including
the valuation of tangible assets for purchase price allocation, financing, tax
and depreciation purposes, property tax analysis, operational and technical due
diligence reviews, and cost segregation studies. Walt has extensive experience
in machinery and equipment valuation, and cost segregation studies in the
hospitality, telecommunications, pharmaceutical, manufacturing and real estate
industries. During his career, Walt has conducted on-site inspections of over
1,000 properties, and his technical reviews and valuations have appeared in
reports for a variety of organizations.
Prior to the founding of WOTS, Walt held the position of Senior Consultant of
Cost Segregation Service and Senior Valuation Manager at Porto Leone Consulting,
LLC and was responsible for the development of their national cost segregation
practices. Walter holds a Bachelor of Arts degree in Economics and Bachelor of
Science degree in Finance from Kean University of New Jersey and a Master of
Arts degree in Economics from Montclair State University of New Jersey.
Walt continues to strengthen his credentials by not only taking, but also
teaching, technical courses and seminars associated with the valuation of
machinery and Cost Segregation. Walt is an Accredited Senior Appraiser (“ASA”)
with the American Society of Appraisers, and a Member of the American Society of
Cost Segregation Professionals (“ASCSP”) and maintains comprehensive
relationships with numerous design, manufacturing, appraisal and economic firms
and associations.
No prerequisites for this course.
Agenda
The following topics are covered in this course:
- Important Definitions.
- Depreciable Assets.
- Cost Segregation Overview.
- Evolution & Legal Framework.
- Methodologies.
- Qualifying Property.
- Calculating and Correcting Depreciation.
- Cost Segregation Benefits.
- Understand the importance of proper asset classification for federal tax
purposes.
- Identify assets that often qualify for a shorter tax life.
- Begin to properly classify assets between personal property and real
property for federal tax purposes.
- Be able to calculate deprecation and fix incorrectly reported tax
deprecation.
- Be aware of the tax benefits of proper tax classifications and cost
segregation studies.
- Closing Remarks.
Learning Outcomes
Upon completion of this course,students will be able to:
- Explain what cost segregation is, how taxpayers
benefit from it, and how it has changed over the years;
- Identify tax issues that should be considered in conjunction with a cost
segregation studies;
- Recognize the potential impact of cost segregation on estate planning;
- Discuss the impact of tax reform on cost segregation;
- Discuss cost segregation opportunities related to the tangible property
regulations and disposition regulations; and
- Identify new opportunities to immediately deduct abandoned building
components, avoid recapture tax, and expense demolition
costs.