Cost Segregation

Why Do Some Cost Segregation Firms Take So Long to Finish a Study?

Behind the Scenes of a Cost Segregation Firm Nothing is as frustrating as contracting with a cost segregation firm to help you reduce taxes and then waiting for six, eight, or even twelve weeks to complete the study. While waiting, your CPA tells you your taxes have been completed, but the cost segregation study delays …

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What is a Negative 481a Adjustment, and How Do I Get One?

When a tax method change occurs, whether it is from cost segregation, the Tangible Property Regulations, or any other tax method changes (for which the cutoff method cannot be used), a 481a adjustment must be used. Suppose income for any taxable year is under a different method of accounting from the method used in the …

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inherited property

Inherited Property. Long-Term Capital Gain or Short-Term?

When investment property is inherited, the capital gain or loss on any later disposition of that property is treated as a long-term capital gain or loss. The gain or loss on a sale or trade of property is found by comparing the amount realized with the asset’s adjusted basis. The basis of property that is …

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Building Demolition

Demolishing Your Building? You Need to Read This.  Now.

When investors and building owners purchase a building that may need to be totally gutted soon, they are disheartened to learn that they will lose all future depreciation deductions related to the building. This Regulation is under §280B. §280B states that if a building is being demolished and more than 25 percent of the walls …

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cost segregation sales person

Why You Need to Ask Your Cost Segregation Salesperson These Questions

Cost segregation is not only engineering-based but also TAX based. Therefore, your salesperson must have advanced knowledge of the tax implications of a cost segregation study. Cost segregation is not only engineering-based but also TAX based. Therefore, your salesperson must have advanced knowledge of the tax implications of a cost segregation study. Formerly, I was …

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Building receiving cost segregation study

Why You CANNOT do A Cost Segregation Study Without Utilizing the Tangible Property Regulations

If your cost segregation firm does not FULLY understand the MANDATORY Tangible Property Regulations, you are missing substantial opportunities to reduce your taxes. Moreover, you could be out of compliance with the U.S. Tax Code. Even the large cost segregation firms, who brag about how many studies they have done, ignore the mandatory Tangible Property …

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How Most Cost Segregation Firms are Costing You Money

If your cost segregation firm does not understand U.S. Tax Code, you are probably losing significant opportunities to reduce your taxes. After being in the industry for over seven years and having worked for a large cost segregation firm, I am dismayed at the lack of tax knowledge that so many engineering-based firms possess (or, …

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