MACRS – Page 3 – Segregation Holding

Real Estate Investors; have you established a repair fund?

By Jeff Hobbs May 7, 2012

As professional real estate investors, have you established a repair fund yet? Whether you invest in commercial real estate or residential rental properties, an emergency repair fund is vital to the successful management of your investment. The best way to handle repair contingencies is to establish a repair fund. Each month a portion of your…

Cost Segregation Benefits Go Beyond Increased Cash Flow

By Jeff Hobbs May 3, 2012

Cost segregation benefits go beyond increased cash flow by far. There are several reasons for this, not to mention reduced or temporarily eliminated income taxes. These cost segregation benefits would include reduced real estate taxes, lower insurance premiums, IRS tax compliance, and an itemized listing of assets. The latter provides the business owner a verifiable…

Cost Segregation Benefits Multifamily Properties

By Jeff Hobbs April 19, 2012

Cost segregation benefits multifamily properties by accelerating depreciation. A cost segregation study identifies and reallocates personal property assets to shorten the depreciation time for income tax purposes, ultimately reducing current income tax obligations. Tangible personal property includes a building’s non-structural elements, land improvements and indirect construction costs (e.g. architect’s fees, permits, etc.). The primary goal…

Cost Segregation Benefits Self-Storage Facilities

By Jeff Hobbs April 16, 2012

Cost segregation benefits self-storage facilities by increasing cash flow through accelerated depreciation. Cost segregation is not new. It has been in existence since 1954 when the IRS allowed for certain personal assets to be accelerated into a shorter life class. However, it wasn’t until Hospital Corporation of America sued the IRS in 1997 and won…

Cost Segregation and AmeriSouth XXXII, Ltd., T.C. Memo. 2012-67

By Jeff Hobbs April 10, 2012

The IRS seemingly chalked up a victory against cost segregation in the AmeriSouth XXXII, Ltd. case, but if one carefully reads T.C. Memo. 2012-67 a different conclusion might be reached. The truth is, what this case is really about is a property owner who walked away from the battle…no; actually, it was a surrender by…