Everyone understands the basics of depreciation. You purchase or construct an asset, and the government allows you to take a percentage of that cost, per year, as a tax deduction, thereby reducing…
When is the right time to do cost segregation study?
Cost segregation is a strategic tax planning tool that, by depreciating certain components of a property at an accelerated rate, has the potential to shelter taxable income. Commercial real estate owners and…
How commercial property owners can use bonus depreciation to reduce income taxes
Commercial property owners may use bonus depreciation to significantly reduce income taxes. Cost Segregation is not a new concept, but provisions contained within the Tax Cuts and Jobs Act of 2017 have…
Cost Segregation Increases Cash Flow
Cost Segregation Increases Cash Flow for Commercial Property Owners Cost Segregation Studies (CSS) have become more common because this Internal Revenue Service (IRS)-approved process reduces income tax and increases cash flow. Intelligently…
Alternative Minimum Tax Consequences Are Not a Result of Cost Segregation
Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in…
Interior Non-load-bearing Walls and Cost Segregation
As much as 95% of interior partitions and non-load-bearing walls are misclassified as short-life property. The IRS has guidelines as to when these assets may be considered personal property. Has your cost…
Cost Segregation and REITs… Explained. Improve financial results. Attract targeted investors.
REITs can benefit significantly from cost segregation studies. Cost segregation minimizes ordinary income to maximize return of capital and/or capital gain related distributions. It also creates flexibility to achieve various dividend objectives….
Top Way to Reduce Income Taxes for Commercial Property Owners
Almost everyone understands that depreciation helps increase cash flow by reducing reportable income. What if there was a way to “turbocharge” your depreciation and dramatically enhance your bottom line??? Active real estate…
Office Building Cost Segregation Finds Hidden Cash For Owners
Commercial investors are searching for ways to improve cash flow. One technique is office building cost segregation. How does cost segregation work? Commercial real property (not including the land) is depreciated over…
Landlords Use Apartment Building Cost Segregation To Reduce Tax Liability
One of the advantages of investing in commercial property such as apartment buildings. The IRS has provisions in the tax code to reduce your tax liability. Apartment building cost segregation allows landlords…