Income Tax Deduction and Other Tax Benefits
Donor advised funds (DAFs) provide an immediate income tax deduction as well as four other tax benefits. Source: Income Tax Deduction and Other Tax Benefits from Donor Advised Funds
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Does Owning Rental Property Help With Taxes?
Does owning rental property help with taxes? In a word, yes! There are many ways to save on taxes, but owning rental property will definitely do so. Here are 3 categories where owning rental property will help. Accelerated Depreciation Accelerated depreciation uses the Modified Accelerated Cost Recovery System (MACRS) method of depreciation. This allows the…
How does owning Rental Property affect taxes?
How does owning Rental Property affect taxes? Beach House >Many people own rental property. Residential rental property includes a single-family house, duplex, triplex, quad-plex, and, of course, apartments of all sizes. Rental property can also include commercial property. This can include all types of properties such as office building, retail, warehouse, and more. If you…
What are the new Tangible Property Regulations?
What are the new tangible property regulations? Many of you know, and just as many don’t know, there are new tangible property regulations. The IRS has been working on these tangible property regulations over 4 years. They were finalized and enacted last January, 2014, just to be rescinded last fall. In effect, the accounting community…
Depreciation Recapture
What is Depreciation Recapture? When a taxpayer purchases a tax-deductible asset for use over several years, the taxpayer can deduct a percentage of the asset’s value from his or her yearly taxable income over the life of the asset. (See IRC §§ 167, 168 and the IRS tables of class lives and recovery periods). The…
IRC Section 1245 Definition
IRC Section 1245 Definition: A portion of the Internal Revenue Code states that depreciable property that has been sold at a price in excess of it’s depreciated or salvage value may qualify for favorable capital-gains tax treatment.To find out more, go to… Source: Section 1245 Definition | Investopedia
What is Accelerated Depreciation?
What is accelerated depreciation? Well, in layman’s terms, it is the depreciation of fixed assets at a faster rate early in their useful lives. Accelerated depreciation reduces the amount of taxable income in the early stages of asset life. The result is, tax liabilities are deferred. The net effect of accelerated depreciation is the company…
CPA Ecstatic with Cost Segregation Results!
CPA is ecstatic with cost segregation results for her office! We have worked with Chandler & Knowles, CPAs, for many years and recently completed a cost segregation study on their corporate offices in Flower Mound, Texas. After providing the CPAs with our free benchmark estimate, our analysis showed about $20,000 in federal income tax credit.…
Cost Segregation and the IRS
Cost segregation and the IRS are likened to your hand fitting into your glove…snugly. Cost segregation actually came about as a result of Hospital Corporation of America suing the IRS…and winning! The Supreme Court of the United States heard arguments from opposing counsel and ruled that there are building components qualifying for shorter depreciation periods…5-years,…
Can Cost Segregation Help List & Sell More Property?
Qualified Commercial Property Can cost segregation help list and sell more commercial property? Yes! Commercial property owners can employ cost segregation as a tool to help sell their properties. By offering the property with an engineered cost segregation study they do these things: 1) Give the buyer a MACRS-established property that… Meets the new Repair…
