Section 1250 – Segregation Holding

When Do You Recapture MACRS Depreciation?

By Jeff Hobbs October 31, 2013

When Do You Recapture MACRS Depreciation? This seem to be the “question-du-jour” of late! MACRS is Modified Accelerated Cost Recovery System. When a commercial property owner disposes of property that was depreciated using MACRS, any gain on the disposition generally is recaptured as ordinary income up to the amount of the depreciation previously allowed or…

Cost segregation delivers income tax refund for theater owner!

By Jeff Hobbs March 28, 2012

Cost segregation delivers income tax refund for small-town theater owner! Instead of writing a check to the IRS, the owner is cashing one from the IRS! A business owner’s CPA shared the benefits about cost segregation with his client who owns a million dollar commercial building converted into a theater decades ago. A beautiful structure…

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…