QEA: Quantum Engineering Associates Inc

Case Studies

MULTI-TENANT "STRIP" SHOPPING CENTER

Project Overview

QEA, Inc. was engaged by the owner's of a numerous large shopping centers to conduct an Engineering-based Cost Segregation Study for an existing retail property located on 25.259 Acres. The property consisted of two buildings. The main facility is 200,997 gross square feet; the second, 19,559 gross square feet. The entire property was placed into service in 2006. The retail center's major anchor tenants comprised of Sports Authority, TJ Maxx, and Bally Total Fitness to name a few.

The Study objective was to identity property components that could be reclassified to shorter recovery periods to accelerate building depreciation and defer income taxes.

Tax Benefits Summary

Cost Basis: $44,310,652.93

Depreciable Basis(less land): $29,562,383.00

Cost Reallocated: $9,254,540.00

Reallocation Percent: 31.30%

1st Year Deferred Tax: $3,239,089.00

Total Deferred Tax:(5 Yr NPV) $4,000,000.00 +

Project Results

As a result of this Engineering-based Cost Segregation Study the client was able to reallocate $9,254,540.00 or 31.30% of the assets to shorter recovery. The client's projected tax benefits on a Net Present Value (NPV) basis were projected to be a total of at least $4,000,000 and a first year tax benefit of $3,239,089.00

QEA's Engineering Process

Our construction engineers performed a complete analysis of all available construction drawings and specifications, contractor payment applications, invoices, and other supporting documentation. We prepared a detailed analysis of all accumulated data on a property unit basis for cost allocation purposes under the provisions of the Internal Revenue Code. We then performed an on-site inspection to verify, photograph, and document the property. Finally, our internal audit team of senior construction engineers and tax specialists reviewed and certified its completeness and accuracy. You owe it to your clients to inform them about this strategy. You are welcome to use our attached Power Point Presentation in doing so. We only ask that you use QEA to execute a Cost Segregation Study that meets and exceeds the 2004 IRS Cost Segregation Audit Guidelines.

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	Case Studies MULTI-TENANT "STRIP" SHOPPING CENTER Project Overview QEA, Inc. was engaged by the owner's of a numerous large shopping centers to conduct an Engineering-based Cost Segregation Study for an existing retail property located on 25.259 Acres. The property consisted of two buildings. The main facility is 200,997 gross square feet; the second, 19,559 gross square feet. The entire property was placed into service in 2006. The retail center's major anchor tenants comprised of Sports Authority, TJ Maxx, and Bally Total Fitness to name a few. The Study objective was to identity property components that could be reclassified to shorter recovery periods to accelerate building depreciation and defer income taxes. Tax Benefits Summary Cost Basis: $44,310,652.93 Depreciable Basis(less land): $29,562,383.00 Cost Reallocated: $9,254,540.00 Reallocation Percent: 31.30% 1st Year Deferred Tax: $3,239,089.00 Total Deferred Tax:(5 Yr NPV) $4,000,000.00 + Project Results As a result of this Engineering-based Cost Segregation Study the client was able to reallocate $9,254,540.00 or 31.30% of the assets to shorter recovery. The client's projected tax benefits on a Net Present Value (NPV) basis were projected to be a total of at least $4,000,000 and a first year tax benefit of $3,239,089.00 QEA's Engineering Process Our construction engineers performed a complete analysis of all available construction drawings and specifications, contractor payment applications, invoices, and other supporting documentation. We prepared a detailed analysis of all accumulated data on a property unit basis for cost allocation purposes under the provisions of the Internal Revenue Code. We then performed an on-site inspection to verify, photograph, and document the property. Finally, our internal audit team of senior construction engineers and tax specialists reviewed and certified its completeness and accuracy. You owe it to your clients to inform them about this strategy. You are welcome to use our attached Power Point Presentation in doing so. We only ask that you use QEA to execute a Cost Segregation Study that meets and exceeds the 2004 IRS Cost Segregation Audit Guidelines.