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  Cost segregation is a highly beneficial and widely accepted tax planning strategy utilized by real estate investors to increase cash flow.  Cost segregation studies can benefit taxpayers who purchase, construct, expand, or renovate real estate property.  A study can take the cost of each component of a qualifying real estate investment and reclassify and break it down among shorter recovery periods; in turn, you can accelerate depreciation and increase cash flow.  WHAT IS COST SEGREGATION: Cost segregation is a highly beneficial tax planning strategy utilized by real estate investment companies to accelerate depreciation deductions, defer tax and improve cash flow.  Cost segregation studies can benefit taxpayers who purchase, construct, expand, or renovate real estate property.  A study can take the cost of each component of a qualifying real estate investment and reclassify and break it down among shorter recovery periods; in turn, you can accelerate dep...

  Cost Segregation studies offer a powerful way for commercial building owners to unlock depreciation deductions, reduce their tax burdens and boost cash flow by reclassifying certain real property assets as personal property. Cost segregation is a conservative and IRS-defined approach for depreciating commercial properties. It is the most accurate depreciation methodology for assets acquired after September 27, 2017. In order to determine if a cost segregation study is appropriate for you, consult with your CPA at the beginning of the process. This will make you feel confident that an appropriate and cost effective study is conducted, by bringing your accounting professionals together, when you acquire or develop a property. Advantages of a Cost Segregation Study The main advantage of obtaining a Cost Segregation study is that it can shorten the useful lives of assets under accelerated depreciation methods.  A taxpayer can reduce the current federal taxable income by taking ...

During this chaotic time, cash is king. Real estate owners and property owners who have made improvements to their properties can benefit and obtain tax relief from the COVID-19 initiatives. Cost segregation benefits multiple industry types which include apartments, hotels, office buildings, shopping centers, retail, drug stores, private schools, medical buildings, nursing homes, funeral homes, manufacturing units, warehouse, storage, restaurants, fast food facilities, auto dealership, banks, REIT's and green buildings. Cost segregation is a specialized and powerful tool that analyses capital costs and allocates costs between different depreciable lives. This includes 5, 7, 15, 27½, and 39-year items.  Cost segregation accurately allocates property components for federal income tax depreciation calculations. Property owners frequently increase depreciation by 50-75%, thus lowering taxable income. Cost Segregation: A tax relief opportunity for real estate owners A cost segregation s...

  Do you own a property in Texas? If you are looking to reduce your property taxes by hiring a property tax consulting firm , then you must definitely be having these big questions in mind. Whom should I hire? How much would it cost? Is it the right choice?  There is nothing wrong with asking yourself these questions, but the toughest part is finding the right answer. It is considered tough because each case differs. However, homeowners who are well prepared can present their case all by themself, win the case and get a favorable reduction. Two major issues when you opt to protest all by yourself Homeowners who opt to protest their property taxes usually face these two hurdles in common.  1. Will you be able to show up for the hearings each and every year and 2. Do you have the time and patience to prepare for the hearings and protests? Many opt for a property tax consulting firm because of the convincing factor. Five primary reasons why you should opt for a property...

  Commercial property owners, here is an eye-opener for you. Reduce your federal income taxes with a cost segregation study. Have you recently purchased a building or spent dollars on appliances or furniture? Cost Segregation helps you shorten the useful life of assets using the accelerated depreciation method which in turn reduces your tax liability resulting in an increased cash flow. It is truly a hidden gem for taxpayers, continue reading this article and you will know why. Cost Segregation – Tax strategy used by commercial property owners Cost segregation helps you identify personal property assets, say a building's non-structural elements, indirect construction costs, or exterior land improvements and lessens the depreciation time for taxation purposes which in turn reduces tax obligations. It is a proven IRS defined method for depreciating commercial properties and is also considered the most accurate method for any asset acquired or constructed after 1986. Cost segregation ...

Here is the big question all Texans have in mind; will I get a tax break in the midst of COVID 19? With COVID 19 affecting the real estate market will there be a break in property taxes in Texas? The sad truth is a BIG NO . Yes, you heard it right, it might sound bitter, but Texas property owners are likely not to see any tax break this year. Why so? Here are two main reasons, the first reason being, your property values were set by the appraisal districts on January 1st before the deadly virus reached the pandemic stage. The second reason is the written opinion issued by the Texas Attorney General - Ken Paxton, where he stated any economic damage caused by COVID 19 does not qualify for a tax exemption . Texans, it’s time to plan! If you are a property owner who is expecting to see a hike in the appraised value of your property, then it's high time you plan. Here is a simple plan for you. First, start off with the documentation. Collect information about comparable property sales,...

Are you a real estate newbie trying to familiarize terms in the business? Good job! Studying and researching are sure-fire ways to making it big in the real estate industry. In this article, we will talk about one of the three main asset classes of commercial property—that is, the industrial property. So  what is industrial property ? Industrial property refers to an asset that is utilized for industrial purposes. The next question would be, “ Which of the following is considered industrial property ?” or “ what is considered industrial property ?” An industrial property comes in manifold shapes and sizes, encompassing a wide range of business types. Read more and discover its specifications. Assets That Are Considered Industrial Property An industrial property has three classifications: small, medium to large, and enormous. Small industrial sites. This covers single- or double-story buildings designed for industrial purposes. Most of the time, the interior spac...