Is cost segregation a good idea to combine with 1031 Like-Kind Exchanges? First, what is a §1031 Like-Kind Exchange? A §1031 exchange, a.k.a. tax deferred exchange, is a simple strategy and method for selling one qualified property and then proceeding with the acquisition of another qualified property within a 180-day time period. The qualified property…
Cost segregation and new construction is like a hand in a glove! Seriously, if you are contemplating new construction, cost segregation should be your first thought! The potential benefits of having a Cost Segregation Study (“Cost Seg”) performed on new construction can increase the available assets that qualify for cost segregation by as much as…
How can Cost Segregation help you sell more commercial real estate as the professional commercial real estate broker? 1) Income taxes: reduced or eliminated federal & state income taxes increases available cash flow. 2) Real estate taxes: personal property taxes are lower than real property taxes by as much as 25% which increases available cash…
Can cost segregation create jobs for America? Well, let’s see…but first, what’s really going on with our unemployment! The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated “long-term” discouraged workers, who were defined out of official existence in 1994. That’s right, they simply just don’t exist any more. True unemployment…
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).…
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…
Cost segregation is often overlooked though it is known by many commercial real estate owners. A combination of factors contribute to it not being implemented, but typically the most heard reason is “my CPA hasn’t told me about this.” So, let’s address it’s implementation here. It is a methodology used to reclassify certain building costs…
Segregation Holding Limited (SHL) completed a benchmark analysis on a mid-western regional bank and was able to find 30% of the real property (§1250) assets that qualified for personal property (§1245) status. In doing so, SHL delivered over 2500% ROI which put over $150,000 in after-tax cash in the pockets of the LLC partners. Cost…
Are you ready to write a big check to the IRS on April 15th? It’s just around the corner you know! But wait…you don’t have to send the IRS any money if you use your building as the tool the IRS allows for and in the manner prescribed by the Internal Revenue Code…depending, of course,…
Do you need cash but have nowhere else to turn? Try Segregation Holding Limited…we’ll deliver results with a cost segregation study. Cost segregation accelerates depreciation on a commercial or rental property according to IRS guidelines for MACRS method of depreciation. Bottom line…it pulls real cash out of the property, many times as much as 12%…
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.
