Cost Segregation Benefits Medical Office Buildings Cost segregation benefits medical office buildings. By accelerating depreciation on all personal property, medical office buildings can provide Dr.’s with significant increases in investment income. It really is quite simple. IRS acquiesced to a lawsuit brought by HCA in Hospital Corporation of America v. Commissioner, 109 T.C. 21 (1997)("HCA"...
November 2nd, 2012 
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 - 1031 Exchange Year-end Tips - Here's a couple year-end tips if you are considering a 1031 exchange. Did you know that if you open a 1031 exchange and your Accommodator is holding your funds before the New Year you get to defer any capital gain taxes due until 2014, even if you cancel your 1031 exchange? Since the 1031 exchange is concluded (or cancelled) in 2013, taxes (if applicable)* are ...
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...
- Cost Segregation Benefits Hotel Property Owners - Cost segregation benefits hotel property owners by accelerating depreciation on personal property. Personal property, for the purposes of cost segregation, are assets that enhance the real property, but are non-structural in nature. Examples of personal property for hotels would include carpeting and most flooring choices, decorative lighting...
Cost segregation increases debt-service coverage every time it’s applied. By applying cost segregation to any method of financing there will always be an increase in debt-service coverage…sometimes by 3:1 or more. In today’s shaky economy, when bank loans are nearly impossible to negotiate even for the best of credit risks, cost segregation provides the needed additional cash flow to make a...
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 ...
Cut Costs and Save Money on Sales Taxes Companies are always seeking ways to cut costs and save money, especially on sales taxes. However, companies frequently overlook a significant opportunity to reduce their costs – namely, state sales taxes. Companies usually pay such taxes with little thought as to whether they can reduce or eliminate such taxes. The fact is, most purchases companies ...
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...
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