Cost Segregation
Deadline Looms for Some Tax Benefits Under the Small Business Jobs Act
Real estate and construction companies need to take note that some key provisions of the Small Business Jobs Act of 2010 (the Act) will expire by the end of the month. The Act expanded two income tax expensing provisions as an incentive to encourage businesses to purchase certain types of property. In order to take full advantage of these provisions for 2010 calendar tax years, qualified businesses will need to act quickly, placing property in service as soon as December 31, 2010. Bonus Depreciation Retroactive to January 1, 2010, the Act extended the 50-percent first-year bonus depreciation that previously expired at the end of 2009, giving. Read More.
Consider Recent Tax Law Changes as You Prepare Your Tax Return
As tax time approaches, businesses in the real estate and construction sectors will have to reconcile a challenging 2009. However, several pieces of legislation were signed into law over the course of the year that can provide some assistance, particularly to the residential construction industry. Before starting on your 2009 tax return, you should be aware of the following provisions. New Net Operating Loss Carryback Provisions The longstanding rule related to carrybacks of net operating losses (NOLs) allowed losses to be carried back to the two preceding tax years. Any unused NOLs were then carried forward for 20 years (which. Read More.
Cost Segregation Can Enhance the Benefits of Expanded NOL Carryback Provisions
With the recently passed law extending the carryback period to five years for net operating losses, companies and individuals are looking for ways to maximize their available tax refunds. Accelerating tax deductions into 2009 through a cost segregation study can greatly enhance the available refunds. Cost segregation studies can be performed on new and old buildings to determine what portion of the building may be classified as personal property. Once a portion of a building is classified as personal property it can be depreciated over a much shorter tax life. When studies are done on buildings that have previously been placed in service, you can catch-up the depreciation on the reclassified personal property.. Read More.
Cost Segregation in Challenging Economic Times
Cost segregation studies are one of the best ways for owners of real estate to put immediate cash in their pockets. By accelerating depreciation and, as a result, deferring federal and state income taxes, cost segregation studies are becoming increasingly popular as a method of generating tax savings and improving cash flow. Recent provisions in the American Recovery and Reinvestment Act of 2009 will have a tremendous impact on the benefits available to commercial property owners from cost segregation studies. Cost segregation is the process of determining the proper classification of an investment in a facility between structural and nonstructural. Read More.
Your Real Estate May Entitle You to Substantial Tax Savings
Are you missing valuable income tax benefits? A common misconception is that commercial real estate can only be depreciated over 39 years, but the reality is that the depreciable life of a building may actually be determined by how the building is used. If you are still depreciating your property over 39 years, you may be missing a valuable and often overlooked income tax benefit. Through the use of a cost segregation study , you may be able to enhance your cash flow today by lowering your income taxes and recovering some of your real estate investment in as little as five. Read More.
New Recovery Act Expands Stimulus Relief to Real Estate and Construction Sector
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“the Recovery Act”), which contains nearly $800 billion in economic stimulus spending and tax relief, much of which is targeted to help businesses in the current economic climate. KEY PROVISIONS Expanded Net Operating Loss Carryback – Prior to this new law, net operating losses (NOLs) could be carried back to the two years before the year in which the loss arose and carried forward to each of the succeeding 20 years. For tax years beginning or ending in 2008, the Recovery Act extends. Read More.