Regardless of elections, year-end tax planning moves forward…with or without Congress. The fate of many of the tax incentives taxpayers have grown accustomed to over recent years will likely remain up in the air until Congress and the Administration finally face off weeks before year-end 2012. While the results of Election Day will have bearing…
Here’s a couple year-end tips if you are considering a 1031 exchange. Did you know that if you open a 1031 exchange and your Accommodator is holding your funds before the New Year you get to defer any capital gain taxes due until 2014, even if you cancel your 1031 exchange? Since the 1031 exchange…
Deducting charitable contributions is quite often tricky, but the eight essentials shared below will guide you. Donations made to qualified organizations may help reduce the amount of tax you pay. With that in mind, here are eight tips to help ensure your charitable contributions pay off on your tax return. 1. If your goal is…
When you receive cash other than the like-kind property in a like-kind exchange, the cash is treated as “boot.” Boot does not render the transaction ineligible for non-recognition treatment but it does require you to recognize gain to the extent of the cash received. The same is true for other non-like-kind property in a like-kind…
As 2013 draws closer, news reports about “taxmageddon” and “taxpocalypse,” describing expiration of the Bush-era tax cuts, are proliferating. Many taxpayers are asking what they can do to prepare. The answer is to prepare early. September may seem too early to be discussing year-end tax planning, but the uncertainty over the Bush-era tax cuts, incentives…
What Methodology is Required by the IRS for Cost Segregation? Neither the Service nor any group or association of practitioners has established any requirements or standards for the preparation of cost segregation studies. The courts have addressed component depreciation, but have not specifically addressed the methodologies of cost segregation studies. The Service has addressed this…
The Cost Segregation Audit Techniques Guide was developed specifically to assist IRS examiners in their review and exam of cost segregation studies. It was NOT, as many believe, developed to help cost segregation firms, or the layperson, perform a cost segregation study. It’s primary goals are to help these examiners understand: why cost segregation studies…
A taxpayer may prepare cost segregation look-back studies on existing assets and re-calculate the depreciation for prior tax years based on the reclassified asset costs. The IRS-Approved process for a taxpayer to change accounting method is the timely filing of Form 3115 (Request for Change in Accounting Method). Per Rev. Proc. 2002-9, 2002-3 IRB 327,…
How do I calculate depreciation recapture? Let’s take a look at the process. 1) Review the original price paid for the asset being sold. For example, let us say you are selling a commercial property purchased eight years ago for $500,000. 2) Add the depreciation expense claimed each year you owned the property. Suppose, for…
Cost segregation services benefit commercial property owners in many ways. How you ask? Well, let’s look at a brief list: 1) Cost segregation accelerates depreciation 2) Cost segregation reduces income tax burden 3) Cost segregation increases cash flow 4) Cost segregation reduces real estate taxes 5) Cost segregation reduces property insurance premiums 6) Cost segregation…
If you own Commercial Property, including leasehold improvements or rental houses, that was damaged or destroyed by the recent natural disasters, we can help you maximize your Federal tax benefits, saving you tens of thousands of dollars. You must act now before rebuilding. FREE consultation and benefit analysis. It’s your money, why wait.
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A member of our Disaster Recovery Team will contact you within 48 hours to initiate your tax credit.
