How cost segregation works for the commercial property owner…

1) Modified Accelerated Cost Recovery System (MACRS) is the IRS-required method of depreciation for tangible personal property (§1245)* assets residing within real property (§1250) assets, and cost segregation is required in order to apply it properly which places the owner in IRC tax compliance.

2) §1245 assets are depreciated over 5-, 7- and 15-years while §1250 assets are depreciated over 39-years (aka Straight-Line Method {SL}). Cost segregation is required to differentiate the two.

3) When cost segregation is applied two things happen simultaneously…1) federal (and most often state) income taxes are reduced or temporarily eliminated, and 2) there is a commensurate increase in cash flow in one of two ways…a) income tax credits are issued, or b) income tax refund is obtained. Cost segregation delivers income tax refunds.  Continue reading →

Views: 27

Comment

You need to be a member of COMMERCIAL REAL ESTATE PROFESSIONALS & INVESTORS GROUP to add comments!

Join COMMERCIAL REAL ESTATE PROFESSIONALS & INVESTORS GROUP

"Early Adopter Upside with 90% Downside Protection" Sale is now live with up to 6X bonuses

FOLLOW US

© 2021   Created by Jude G Regev.   Powered by

Badges  |  Report an Issue  |  Terms of Service