Chattel Professionals: cost segregation reports.

When Chattel Professionals performs a valuation, you receive:

Net tax reductions
Our cost segregation reports can significantly reduce your taxable income right now, and capital gains in the future. The average value of chattel found in a 1,500 square-foot residence is approximately $15,000. Depending on your income tax bracket, that could be a net savings of $2,250-$5,250.

Increased cash flow on your investment property
Depreciation deductions can more than double during the first three years of ownership, and your tax savings can generate increased monthly cash flow, often turning a cash flow negative property into a positive one. For example, a $2,000 tax credit equates to about $160 per month in the net tax reduction for a property. That’s $160 more in profit each month to invest and grow your wealth more quickly.

An inventory of your property
Our reports contain detailed information about the chattel in and on the property. It is independent verification of that property and its value. Having this information for audits, insurance purposes and emergencies is invaluable.

A visual record
The report that you receive comes with a CD of photos. This serves as a visual record of how the property looked when the data was collected. These pictures, along with the inventory, can help you work with your insurance company to make sure you are adequately insured in the case of damages. Additionally, it can help you if your tenants damage your property. This visual record has proven beneficial to investors who bought their properties sight-unseen.

Do you want savings now or do you want to wait 27.5 years? As an owner of residential or commercial income-producing property, if you don’t have an independent report – a documented inventory of the chattel in your buildings – you are losing money by using the straight-line method of depreciation. If your accountant is guessing at the value of your chattel, you are losing money.

Investors buy real estate for the:

Appreciation
Real estate increases in value over time.

Leverage
Using borrowed funds and mortgages, you can buy a property with a small percentage of out-of-pocket cash.

Cash Flow
Renting or leasing the property generates income to offset holding costs. You profit from cash flow when rents are more than holding costs.

Tax Benefits
An income-producing property is a business; there are significant tax advantages to owning a business.

Depreciation
Depreciation is loss in the value of an asset over time from wear and tear or deterioration. The government allows us to recover the cost of an asset’s replacement, which we do by treating depreciation as a non-cash expense on our taxes. In other words, though you claim the depreciation as an expense on your tax return, you have not actually used money out of your pocket. The depreciation reduces the amount on which you pay taxes. If you do not claim all the available depreciation, you are leaving money on the table and paying out more than necessary in taxes.

Make sure you are truly capitalizing on the value in your real estate holdings. We provide chattel valuations to maximize the depreciation and tax benefits that the IRS allows you. Remember, it’s all about minimizing taxes and maximizing cash flow.

This calculator will estimate your federal tax savings.*

Enter the Purchase Price of your property and your Tax Bracket.

Purchase Price	$
Tax Bracket	%

Call: 888-844-1390
info@chattelpros.com

Cost segregation is a lucrative tax strategy…
- Wall Street Journal, June 2003

Please note that this is a rough estimate based on our experience and the tax code. Though these results are not guaranteed, we estimate conservatively.
New construction yields greater savings.