Cost Segregation for CPAs
Expand your services to your clients by offering cost segregation without doing any of the work. Our expert engineers will handle the entire process with audit protection and required documentation.
Understanding Cost Segregation for Multifamily Properties
Multifamily properties are very popular with investors and syndicators, especially for value-add properties where the rents are targeted for growth to coincide with unit renovations and upgrades to tenant amenities. Typically, a 5 to 7 year hold is planned to provide investors a solid rate of return, then a sale with proceeds distributed upon closing.
17 Tax Strategies To Discuss With Your Accountant
Review the possible money-saving tax credits, deductions, and strategies you may be missing out on. Print and share this checklist with your CPA or tax advisor to ensure you are maximizing your tax benefits.
Do cost segregation studies increase the chance of an audit?
Conducting a cost segregation study does not increase your chances of being audited, though you should always have sufficient protection through and engineered cost segregation study to be prepared in the event of an audit. While the IRS allows for and supports straight-line depreciation, they have stated that cost segregation by component is the proper way of handling depreciation.
Who can perform cost segregation studies?
Learn more about the details of who can do cost segregation studies as defined by the IRS as well as the 6 different approaches that you can take.
What is Cost Segregation?
Under tax law, cost segregation is the process of identifying the assets of a commercial property that can be depreciated quicker than usual. For property owners, this will lessen their current income tax obligations and improve their cash flow. Cost segregation is a...
What is Component Level Depreciation?
Confused about what to expense versus what to capitalize? The Tax Cuts Jobs Act (TCJA) has done a lot to benefit commercial real estate owners and investors. Most notably in the changes to the depreciation schedule to allow for 100% Bonus Depreciation on new...
WHAT ARE RESEARCH TAX CREDITS?
The research tax credit is a federal tax incentive for private companies to develop new methods of doing business or improve upon their existing products & processes. The R&D Tax Credit helps offset the wages and costs associated with ongoing research & development. Step one is finding out which activities qualify and step two is identifying the cost associated with those activities.
WHAT ARE 1031 EXCHANGES?
1031 exchanges allow you to transfer profits from one investment property to another without paying capital gains tax. This lets you grow your portfolio and increase your passive income with a huge tax break.