Give Your Financial Institution a Bonus: Moss Adams Knows, ``The Countdown has Begun!''.

LOS ANGELES -- The opportunity to claim bonus depreciation will be lost as of 12/31/04. If they have not already done so, financial institutions should be scrambling to assure they take full advantage of this expiring provision. This tax law has been a true "bonus" for the banking industry helping fuel branch expansion.

Even without the bonus depreciation legislation, the past five years have been extraordinarily friendly towards real estate expansion. From "catching up" depreciation mistakes and deducting all the adjustments in one year, to simplifying how and when to make corrections, the tax environment is as favorable to knowledgeable taxpayers as it's been in many years.

Current tax law provides that most bank buildings be depreciated over 39 years.

Cost segregation, done right, enables a building owner to identify costs qualifying for 5, 7, and 15 year tax lives, apart from the building.

Chris Schnug should know. Chris, a partner in the Cost Segregation practice of Moss Adams LLP, advises that over the past five years, financial institutions she serves have been able to reclassify an average of 45% of bank facility costs into shorter tax lives, significantly decreasing bank taxes due. For every $1,000,000 of project costs, a bank can routinely expect to increase tax depreciation deductions at least $57,000 in the first year. Bonus depreciation triples and quadruples the increase to $170,000 and $250,000 respectively. Even better -- these deductions are applicable to tax reporting.

Schnug says, "Moss Adams Cost Segregation teams a bank's project management with CPAs and qualified Engineers. We evaluate all costs associated with purchase, construction, or remodeling and separate the costs into shorter tax lives. This engineering-based approach is recognized by tax lawmakers as highly beneficial for qualified users."

Shorter tax lives translate into increased tax depreciation deductions. The result is improved cash flow, allowing the institution to reinvest liquid assets elsewhere.

The Financial Institutions division of Moss Adams will introduce "Deposit Those Profits Hiding In Your Bank -- Making Cost Segregation Work for You," an on-line, bankers only, webcast presentation on July 28th, 2004, at 9 a.m. (Pacific Daylight Time). Bankers interested in attending will hear firsthand the ins and outs of cost segregation for the banking industry.

For more information, call Chris Schnug or Lisa Nuessle toll free at 1-800-888-4065 or 1-877-MOSSADAMS.