March 9, 2012 – Segregation Holding

What is IRS Code Sec. 1245 Property & how does cost segregation apply?

By Jeff Hobbs March 9, 2012

Cost segregation is the act of identifying IRS Code Sec. 1245 property. IRS Code Sec. 1245(a)(3) provides that IRS Code (Sec. = §) 1245 property includes any property that is of a character subject to the allowance for depreciation and is either personal property or certain other property described within Code §1245(a)(3) (B) through (F).…

How cost segregation works for the commercial property owner…

By Jeff Hobbs March 9, 2012

1) Modified Accelerated Cost Recovery System (MACRS) is the IRS-required method of depreciation for tangible personal property (§1245)* assets residing within real property (§1250) assets, and cost segregation is required in order to apply it properly which places the owner in IRC tax compliance. 2) §1245 assets are depreciated over 5-, 7- and 15-years while…