The majority of cost segregation providers are conducting studies using the “Residual” method. Yet, it is difficult to find a single cost segregation provider advertising that they provide “Residual” Cost Segregation Studies. Why do you think that is? Perhaps it is because the IRS states that Residual studies are, “simpler and less time consuming” and “can also be less accurate”. The IRS further states that the Residual method, “generally does not reconcile project costs” and “can produce a skewed in result in favor of s1245 property”. Once you truly understand what a Residual Study is, you start to get a sense of why providers are not advertising that they use this abbreviated method. [Read more…]
January 4, 2012
Jan 4 – The Internal Revenue Service today opened the 2012 tax filing season by announcing that taxpayers have until Tuesday, April 17 to file their tax returns.
January 1, 2012
National economic activity expanded at a modest to moderate pace during the period of late November through the end of December.
The reports suggest ongoing improvement in economic conditions in recent months, compared to late spring through early fall. [Read more…]
As in the case of Ronald Pearce and Darryl Pearce versus the Department Of Revenue, State of Oregon. (CLICK HERE for the full tax case.) The plaintiffs chose to perform the cost segregation analysis for their rental apartment properties using the rule of thumb method. They believed their analysis was proper because of their experience in the apartment industry. The cost segregation studies were performed for the 2004 tax year. Years later, in 2006 and 2007 they were audited. Plaintiffs argued that the defendant could not examine a closed year, 2004, to determine the amount of deduction that should properly have been taken in 2006 and 2007.
In conclusion, it was decided that the defendant [Read more…]
Property Owners entrust Property Managers to maximize the return on their building investment. So why wouldn’t Property Managers suggest cost segregation as an additional cash flow benefit to the Property Owner?
Property Managers have all the viable property information to solicit a no cost, no obligation, cost segregation proposal that will lay out the benefits of cost segregation along with the costs to complete the comprehensive study. The Property Manager can present the proposal to the Property Owner and/or his or her CPA to [Read more…]
August 15, 2011
There is still time to conduct a Engineering Based Cost Segregation Study in order to meet the September 15th or October 15th deadlines.
If you own a Commercial or Residential Rental building(s) and owe federal taxes with your 2010 return, a properly performed Engineering Based Cost Segregation Study could reduce or eliminate your tax liability.
You owe it to yourself to find out. We will perform a free, no cost, no obligation initial evaluation and prepare a Cost vs. Benefit [Read more…]