Federal Income Tax – Page 10 – Segregation Holding

Can a cost segregation study apply to buildings not yet constructed?

By Jeff Hobbs January 24, 2012

Can a cost segregation study apply to buildings or leasehold improvements not yet constructed? Yes! A cost segregation study can literally begin at the concept phase long before plans are drawn. The study could be completed, 1) once the Certificate of Occupancy is issued and, 2) the final tax-basis is ascertained from the final AIA…

Does the IRS 45L tax credit make sense to employ?

By Jeff Hobbs January 10, 2012

Per IRS’ guidelines, for a homebuilder to qualify for the New Energy Efficient Home Credit under IRC Sec. 45L, they must receive a certification that the dwelling unit has met the energy savings requirements of Sec. 45L. An eligible certifier must use an approved Software Program to calculate the dwelling unit’s energy consumption for purposes…

100% Bonus Depreciation

By Jeff Hobbs June 23, 2011

There is much confusion in the industry over the extension of the Tax Relief Act of 2010 regarding bonus depreciation. Here is a brief synopsis taken directly from the IRS website: i. A 100% bonus depreciation deduction under § 168(k) is allowed for property acquired and placed in service after Sept. 8, 2010, and before…

What is the difference in Section 1245 property and Section 1250 property?

By Jeff Hobbs May 10, 2011

The benefits of the ITC were somewhat offset by the provisions of IRC §§ 1245 and 1250, also enacted in 1962. These Code sections result in the conversion of capital gain to ordinary income on the disposition of a property, to the extent its basis has been reduced by an accelerated depreciation method. The definitions…

Is Cost Segregation Legitimate?

By Jeff Hobbs April 17, 2011

Cost Segregation is not only legitimate but, in fact, it’s basis for existence is rooted in MACRS, or Modified Accelerated Cost Recovery System, the preferred method of depreciation required by the IRS. Prior to MACRS, however, was ACRS or Accelerated Cost Recovery System. Here is a brief history: Pre-ACRS/ MACRS Depreciation Methods – Prior to…

Is my gift of property or other assets taxable?

By Jeff Hobbs April 14, 2011

If you gift someone money or property during your life, you may be subject to the federal gift tax. Most gifts aren’t subject to the gift tax, however, the IRS has compiled a list of the following eight tips to help you determine if your gift is taxable. 1. Most gifts are not subject to…

How can I save on my income taxes?

By Jeff Hobbs April 12, 2011

Tax time is almost over…at least for Round 1! For those who own commercial buildings or residential rental property and you just wrote a big check to pay your federal income taxes, above what you’ve already contributed in your quarterlies…are you tired of it? Did you think that “this year, finally, I paid enough extra…