By: Racks Jackson | 2012-03-17 | Taxes An analysis has reclassified the components of a building from 27.5, 31.5 and 39 year depreciable lives to five, seven and fifteen years respectively. The benefit comes from accelerating the tax depreciation. read more
By: Patrick Oconnor | 2011-09-18 | Taxes Cost segregation evolved as the result of multiple court cases and IRS rulings. The body of knowledge is summarized in the Audit Techniques Guide (ATG), published by the IRS. read more
By: Racks Jackson | 2012-02-13 | Taxes A concept which is required for those who are looking at assets and taxes is cost segregation. This creates an alternative approach to various taxes and assets as well as how one approaches the ownership and value of various assets. read more
By: Craig Higdon | 2010-04-01 | Accounting While costs such as office equipment and furniture are easily recognizable as personal property, construction-related costs that are often included as part of real property may also qualify for a shorter depreciable life. Everyone knows that a dollar today is more valuable than one received in ten years. Tweed Financial Services, Inc. suggests that a Cost Segregation study, which reviews the depreciation schedules related to your real estate investments, may reduce your taxable profits and thereby enhance your after-tax cash flow. read more
By: Patrick Oconnor | 2011-06-22 | Taxes Tax reduction and tax deferral are the primary benefits of obtaining a cost segregation study. Tax reduction occurs since more income is taxed at the capital gains rate instead of the ordinary income rate. read more
By: Patrick O Connor | 2010-12-06 | Taxes Tax deferral is a key benefit of cost segregation; however, a popular misconception about cost segregation is it is just used for tax deferral, it does not reduce taxes. The tax deferral and tax reduction issue is misunderstood both by sophisticated real estate investors and tax professionals. read more
By: Patrick Oconnor | 2010-11-24 | Taxes Tax Rule No.1: Don’t cheat the IRS. But that doesn’t mean you should cheat yourself. Take every legal tax deduction you can. read more
By: Patrick Oconnor | 2011-07-14 | Taxes By understanding business tax deductions, business owners may enjoy personal benefits from business expenditures - a nice car to drive, a combination business trip/vacation, retirement savings plan - if they follow the myriad tax rules. read more
By: Patrick Oconnor | 2011-10-20 | Taxes Tax reductions and tax deductions are both benefits of cost segregation. However, it would be inaccurate to term cost segregation a tax shelter. The IRS has written a manual titled Audit Techniques Guide that delineates methods to establish depreciation schedules and increase tax reductions. read more
By: Racks Jackson | 2012-04-19 | Taxes it has been observed that there are several types of construction-related costs that can be depreciated over a time period of 5, 7, and 15 years; this is when a cost segregation study comes into the picture. Contrary to popular belief, the purpose of this study is to identify these costs, and help you save some tax. read more
By: Patrick Oconnor | 2011-11-04 | Taxes Tax reduction is just one of the benefits of cost segregation. Many real estate owners and tax preparers believe cost segregation simply defers payment of taxes. While they recognize it effectively generates an interest-free loan from the government, they do not understand it also provides tax reductions in most cases. read more
By: Patrick Oconnor | 2012-04-17 | Taxes By understanding business tax deductions, business owners may enjoy personal benefits from business expenditures - a nice car to drive, a combination business trip/vacation, retirement savings plan - if they follow the myriad tax rules. read more
By: Patrick Oconnor | 2011-06-15 | Taxes Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in the following matrix: read more
By: Racks Jackson | 2012-01-25 | Credit A reputed firm will conduct the cost segregation study in the best possible manner and will provide all the information, which will include interviews, inspections and records. Thus, you will receive well-documented findings in the best format. read more