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How Cost Segregation is affected when a business elects to be a Real Property Trade or Business under Sec. 163(j). A CPA recently asked us how Cost Segregation is affected when a business elects to be a Real Property Trade or Business under Sec. 163(j). The trade-off of making the election under 163(j) is that...
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2022 is the Final Year to Get 100% Bonus Depreciation. On January 1, 2023, the bonus depreciation rate will be changed to 80%, after that it will be phased out by 20% each year. The Tax Cuts & Jobs Act of 2017 (TCJA) was the most extensive tax code overhaul in three decades. Among the...
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If you aren’t using Cost Segregation, not only are you leaving a lot of money on the table every tax season, but you are doing your taxes wrong. Find out why! Are you a residential real estate investor? You’ve probably heard that a Cost Segregation Study can dramatically lower your tax obligation. But maybe you...
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Should I worry if I am audited? Like other tax records, cost segregation studies are subject to IRS audits.  Therefore, it is essential to start with an engineered cost segregation study. Some people worry that having a cost segregation study will trigger an audit, but that isn’t the case. And often, your cost segregation study...
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What is Qualified Leasehold Improvement Property Bonus depreciation is one method of accelerated depreciation, often called a “special depreciation allowance,” by the IRS. The IRS defines qualified Improvement Property (QIP) as any improvement made by the taxpayer to an interior portion of a nonresidential real property building. Such modification is placed in service after the...
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Common Cost Segregation Questions: Depreciation. The concept of depreciation is crucial to your cost segregation strategy. Even if your property isn’t decreasing in value, you could qualify for a deduction. Q. How does cost segregation affect depreciation to help lower my business’s property taxes? A. The concept of depreciation is crucial to your cost segregation...
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By combining a Cost Segregation Study with an Opportunity Zone Fund investment, you have the potential to lower your tax burden considerably. Find out How! Investors who want to defer and reduce capital gains are finding success with opportunity zone funds. What is a Qualified Opportunity Zone? Qualified Opportunity Zones are areas that the IRS...
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Some companies will try to save money by having cost segregation studies performed in-house by company employees rather than a professional in the industry. Unfortunately, this comes with a significant drawback—In-house studies are often viewed with more scrutiny by the IRS Boddie-Noell Enterprises, Inc. v. the United States[1] In 1996 Boddie-Noel Enterprises, Inc. sued the...
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If you’re a property manager, your responsibilities range from: ·       Handling Lease Agreements ·       Rent Collection ·       On-site Maintenance ·       Financial Services ·       And more! With all that you do, how can you add value to the services you provide?...
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