News for CPAs: New Tax Regulations allow you to retire individual building components. Must be Done This Tax Season CPAs and Building Owners Take Full Advantage of this New IRS Tax Regulation and Save Thousands of Dollars. Many accountants and tax professionals are not yet aware of the new partial disposition tax regulations that were enacted in
Cost Segregation – A Useful Tool for CPAs A common depreciation scheme for a real estate purchase is to incorporate the entire cost of the building into a 39-year straight-line depreciation schedule. The cost segregation approach to depreciation provides a money-saving alternative that can lower tax bills and increase cash flow. Under cost segregation, the
Partial Disposition Prevents Simultaneous Depreciation Partial disposition refers to the disposition of part of a larger asset separately from the remainder of the asset, typically when a portion of the asset is replaced before the entire asset is depreciated. The IRS adopted partial disposition rules for Modified Accelerated Cost Recovery System (MACRS) assets with the
Cost Segregation Basics Cost segregation is an alternate method of depreciation in which pieces of a property are classified into separate categories for tax purposes. Instead of applying a typical 39-year depreciation cycle on the entire property and its contents, Cost Segregation allows some asset classes to be depreciated faster, resulting in near-term tax savings.
Our firm had traditionally not utilized cost segregation for our clients. After using Echo as a cost segregation solution, we can actively see the immediate tax benefits for our clients.
Echo cost segregation studies are a very practical and efficient way to provide our clients with the results they are looking for to help reduce their tax bills.
Nick Aarsen, CPATax Manager | Hogan-Hansen, P.C.