Have you replaced the roof on your Commercial or Residential Rental Property?
If you have, chances are the old roof that was removed is still being depreciated on your depreciation schedule, along with the new roof.
We can help to clean up your depreciation schedule and provide you with the information to write-off the old roof that has been removed.
The New IRS and Treasury Department Temporary Repair Regs that went into effect on January 1, 2012, now allows for the retirement of structural components of a building.
“This change allows a taxpayer to recognize a loss on the disposition of a structural component of a building before the disposition of the entire building, so that a taxpayer will not have to continue to depreciate amounts allocable to structural components that are no longer in service. Thus, under the temporary regulations, a taxpayer is not required to capitalize and depreciate simultaneously amounts paid for both the removed and the replacement properties.”
If you are still carrying a retired “Ghost Roof” on your books, you now have the opportunity to write off that asset and realize a tax benefit.
The problem: How to determine or break-out the cost of the disposed roof.
That is where we come in. Our primary task as an Engineering Based Cost Segregation Provider is to determine specific asset costs. We assign costs to every component of a building, including roofs and their respective parts.
We will provide an Asset Retirement Study, which is a limited scope in engagement in which we are applying engineering & costing methodologies to one or several large assets.
We will review your specific project and determine the estimated benefit and the fee to conduct the study. This provides you the opportunity to make an educated decision before moving forward with the study.
Furthermore, we will defend our findings at no charge to the client.
Contact Us today to get additional information or to start the evaluation process.