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…
What do cost segregation services include? Quality cost segregation services include, but may not be limited to, these attributes: 1) Engineer-conducted site analysis and survey 2) Photographic or video documentation of the building and site components 3) Engineer-conducted analysis of all construction drawings 4) Engineer-conducted analysis of building/site appraisal 5) Engineer-conducted analysis of all data…
A cost segregation study needs the CPA affirmation for the client to feel good about cost segregation being applied. I can’t tell you how many times I have shared the benefits of cost segregation with a client who embraces the idea of getting his money today and then talks with his CPA and changes his…
Cost segregation accelerates depreciation on qualifying assets. These assets fall into two IRC categories: Section 1245 and Section 1250. Sec. 1245 property is depreciated over 5 years, 7 years or 15 years. Certain other Sec. 1250 property is depreciated over 15 years also. Examples of Sec. 1245 property include carpet, movable partitions, cabinetry, secondary lighting,…
Cost segregation increases debt-service coverage every time it’s applied. By applying cost segregation to any method of financing there will always be an increase in debt-service coverage…sometimes by 3:1 or more. In today’s shaky economy, when bank loans are nearly impossible to negotiate even for the best of credit risks, cost segregation provides the needed…
Cost Segregation benefits fast-food restaurant for local franchisee. A local Wendy’s franchisee recently contacted Segregation Holding Limited to provide a feasibility study on applying cost segregation to their fast-food restaurants. Ultimately, Segregation Holding Limited was engaged by the owners of five Wendy’s restaurants to conduct a cost segregation study for each of their properties. The…
In today’s economy when cash is king, credit is tight and it’s a “buyer’s” market, “why is Cost Segregation so misunderstood?” The truth is; it simply makes no sense. Cost segregation is the “tool” used to identify individual building components for income tax purposes. Cost segregation accelerates depreciation on all tangible personal property to 5…
Corbett Dentistry benefits from cost segregation study recently completed. Dr. Corbett, DDS, engaged a cost segregation study on her recent tenant improvements. Dr. H.N. Corbett, DDS, has practiced dentistry for approximately 16 years in the Lewisville, Texas area, but recently moved her practice to The Colony, Texas. Dr. Corbett’s new location is a leasehold property…
Pre-Construction planning benefits from cost segregation. Regardless of the type building being contemplated to construct, cost segregation should be among the first considerations. The reason is simple…cost segregation delivers results. When cost segregation is applied during the design phase of a building, many components that would normally be considered real property “become” tangible personal property.…
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.
