SOURCE: Professor Attorney Richard Ivar Rydstrom, LL.M. Taxation

January 18, 2007 04:46 ET

Law Professor Announces New Tax-Favored Construction Design and Tax Accounting That Can Make Real Estate Owners Millions!

The Difference Between the "Screw" and the "Nail" May Be Worth Millions to Real Property Owners

NEWPORT BEACH, CA -- (MARKET WIRE) -- January 18, 2007 -- Professor Attorney Richard Ivar Rydstrom, LL.M. Taxation says: "The IRS recently affirmed the engineer tax based use of the "Cost Segregation" depreciation method in Rev. Proc. 2004-11. Cost Segregation tax depreciation is the reclassification of existing or new real property structural components (Internal Revenue Code 1250) to personal property (Internal Revenue Code 1245) allowing faster depreciation of assets resulting in potentially substantial reductions in income taxes, insurance premiums, real estate property taxes, and increases in cash flow, return on investment ('ROI'), and sales valuation. This method can be applied to existing commercial real property, tenant improvements (old or new), construction, build-outs, renovation, remodeling, restoration, fit-outs, and demolition. That's right, even demolition can now be structured to save taxes."

Introducing New Tax-Favored Construction™ -- Professor Rydstrom, Esq. announces what he calls "Tax-Favored Construction™" based on the newly approved IRS cost segregation depreciation methods and CSI code classifications. All property owners or franchise improvers of existing or new construction of real estate buildings, hotels, restaurants, residential apartment buildings, auto-dealerships, commercial properties including retail, office, industrial, medical buildings, shopping malls, and strip centers should evaluate the new tax and valuation benefits of cost segregation. Developers, architects, designers, builders, engineers, general contractors, construction managers, CPAs and commercial real estate brokers should inform their clientele of the material benefits of considering cost segregation.

Professor Rydstrom, Esq. says, "New tax law opportunities and construction design, materials, methods and installation are now inherently interlinked. The consequence of this marriage is the realization or loss of material economic benefits. What if a cost-segregation study could properly reclassify $1,000,000 from 39 year to 5 year property and $1,500,000 to 15 year property to result in approximately a $550,000 first year tax benefit deduction? What if the present value cash flow benefit could be up to 10% of the cost of the building? What if the HVAC units, plumbing and electrical systems, wall coverings, lighting or removable partitions could save owners millions? Well now owners can greatly reduce tax burdens and increase cash flow without spending cash to realize such benefits."

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