September 28th, 2012 
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Can a cost segregation study be applied to buildings or leasehold improvements not yet constructed? Yes! A cost segregation study can literally begin at the concept phase long before plans are drawn. The cost segregation study could be completed: Once the Certificate of Occupancy is issued and, the final tax-basis is ascertained from the final AIA 702s and 703s in collaboration with ...
Cost Segregation Audit Techniques Guide The Cost Segregation Audit Techniques Guide was developed specifically to assist IRS examiners in their review and exam of cost segregation studies. It was NOT, as many believe, developed to help cost segregation firms, or the layperson, perform a cost segregation study. It’s primary goals are to help these examiners understand: why cost segreg...
August 10th, 2012
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Cost Segregation Look-back Studies A taxpayer may prepare cost segregation look-back studies on existing assets and re-calculate the depreciation for prior tax years based on the reclassified asset costs. The IRS-Approved process for a taxpayer to change accounting method is the timely filing of Form 3115 (Request for Change in Accounting Method). Per Rev. Proc. 2002-9, 2002-3 IRB 327, a taxpaye...
A cost segregation study won’t benefit you if… • You are not profitable and pay no income taxes • You have paid no income taxes in the last 7 years • Your business is a non-profit organization (NPO) • Your building leases 50.1% of it’s space to a NPO • You plan on selling within the first two to three years of ownership • Your building cost under $100,000 to construct ...
What are the different cost segregation methodologies the IRS allows? Here is a list of the six most common cost segregation methodologies… Detailed Engineering Approach from Actual Cost Records Detailed Engineering Cost Estimate Approach Survey or Letter Approach Residual Estimation Approach Sampling or Modeling Approach "Rule of Thumb" Approach For this discussion, we will ad...
April 27th, 2012
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Cost Segregation Covers Closing Costs for the Commercial Real Estate Investor! There is a simple program that covers closing costs for qualified buyers of commercial or residential rental property. We use a tax strategy that generates 5% to 12% of the purchase price (or construction cost) of the building and land improvements. This strategy is called cost segregation, or cost seg. For those famil...
Dentists use Cost Segregation for cash flow! Dentists are turning to cost segregation as a means to tap cash flow from their dental practice. More and more dental professionals realize how easy the process is to take advantage of their dental office when cash flow is tight. Dentists, like other medical professionals, are affected by the slow economy. As more people join the unemployment rolls the...
Is cost segregation a good idea to combine with 1031 Like-Kind Exchanges? First, what is a §1031 Like-Kind Exchange? A §1031 exchange, a.k.a. tax deferred exchange, is a simple strategy and method for selling one qualified property and then proceeding with the acquisition of another qualified property within a 180-day time period. The qualified property must be identified within the first 45 da...
April 6th, 2012
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Can cost segregation create jobs and save the US economy? Can cost segregation create jobs for America? Well, let's see...but first, what's really going on with our unemployment! The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated "long-term" discouraged workers, who were defined out of official existence in 1994....
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