an overview of the strategic partnership program offered by CBRE for CPAs with commercial real estate clients

1. CB Richard Ellis Cost Segregation Brett C. Ward Managing Partner First Cost Segregation In association with CB Richard Ellis Strategic Partnership Opportunities for CPA Firms

3. Section 1: What is Cost Segregation?

7. Personal Property Redefined No longer “screwed and glued” IRS Cost Segregation Audit Techniques Guide “ Tangible personal property includes all property (other than structural components) which is contained in or attached to a building.”

8. Process Electrical

9. Process Plumbing

10. Decorative Lighting

11. Finish Carpentry

12. Landscaping and Site Work

14. Section 2: Benefits to Property Owners

18. Reclassification Averages Warehouses 8 - 12% Office Building 10 - 15% Retail 10 - 40% Medical Facilities 15 - 30% Grocery Stores 15 - 40% Hotels 20 - 40% Heavy Mfg 25 - 70% Processing Plants 60 - 90%

19. Difference in Depreciation Cost basis (structure) % reclassified into 5-year Reclassified assets 39 yr avg. annual write off 5 yr avg. annual write off $10,000,000 20% $2,000,000 $51,282 $400,000

20. Difference in Depreciation 39-Year Schedule $256,412 5-Year Difference $1,743,588 5-Year Schedule $2,000,000 Total Write-off After 5 Years

23. Section 3: Opportunities for CPA Firms

24. American Institute of Certified Public Accountants “ Cost segregation is a valuable tax strategy… The reason is simple: tax deductions are taken earlier, which translates into a present-value, cash flow benefit.” - “Good News for Clients” Sept. 2006

27. Section 4: Partnering with CB Richard Ellis

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