| Utilize cost segregation studies for significant tax savings on your property |
| Wednesday, July 23, 2008 |
| Tax advantages and construction often go hand in hand. The key is to maximize potential benefits with astute planning. Case in point: A building owner may be able to recoup the cost of real estate through annual depreciation deductions. Usually, it is a relatively lengthy process. For residential real estate, the depreciation period is 27.5 years; it is 39 years for business or investment property. Similar rules apply to capital improvements. However, it may be possible for a building owner to recoup some costs much faster by following a cost segregation study. This could be a "selling point" for construction firms as well as a major tax benefit for any company that owns its own building. Click through for details about the significant savings cost segregation studies may provide.
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| Turbocharge your depreciation schedule with a cost segregation |
| Wednesday, October 3, 2007 |
| Tax advantages and construction often go hand in hand. The key is to maximize potential benefits with astute planning. Case in point: A building owner may be able to recoup the cost of real estate through annual depreciation deductions. Usually, it is a relatively lengthy process. For residential real estate, the depreciation period is 27.5 years; it is 39 years for business or investment property. Similar rules apply to capital improvements. However, it may be possible for a building owner to recoup some costs much faster by following a cost segregation study. This could be a major tax benefit if you own a commercial building or a major selling point if you work in the construction industry. Click for more info.
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| Break ground now in order to benefit from energy-saving tax breaks |
| Thursday, August 23, 2007 |
| The Energy Policy Act of 2005 (EPACT) created new tax incentives for installing energy‑saving improvements in a plant or other commercial building. The IRS has issued a series of rulings providing much-needed guidance. Under the EPACT, commercial building owners or leaseholders can claim a deduction for all or part of the cost of energy-efficient improvements placed in service after 2005 and before 2008. The deduction is generally equal to $1.80 per building square foot, less any deductions, less any aggregate deductions claimed in prior years. For example, if no prior deductions have been claimed, the deduction for a 100,000 square foot building is $180,000 ($1.80 times 100,000). The EPACT provisions for commercial building improvements are scheduled to expire after 2007. As a result, plans should be developed soon if construction is intended to benefit from these tax breaks.
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| Cost Segregation Studies |
| Wednesday, February 28, 2007 |
| What is a cost segregation study? Income tax savings are created by utilizing shorter asset lives (qualifying 5, 7, or 15 year write-off periods) that are normally embedded in a building’s construction or acquisition costs (generally depreciated over 39 years using the slow straight-line method). IRS regulations provide for the use of shorter lives |
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