On Monday the American Institute of CPAs (AICPA) formally requested guidance regarding several areas of the Tax Cuts and Jobs Act (TCJA). Tax Executive Committee chair Annette Nellen made a total of eight recommendations, all of which may be explored in this document. Regular readers of this blog may be particularly interested in the seventh […]
Good Things Come in Small Packages: Tax Reform Increases the Utility of Cost Segregation on Smaller Properties
Good Things Come in Small Packages: Tax Reform Increases the Utility of Cost Segregation on Smaller Properties Conventional wisdom has generally been that cost segregation studies are only worth performing on properties with a minimum depreciable basis of $1M. Most people figured that the savings accrued on a smaller study wouldn’t even cover the cost of […]
The Cost Segregation Study: Understanding Your Estimate of Benefits (EOB)
The Cost Segregation Study: Understanding Your Estimate of Benefits Is doing a cost segregation study going to be worth your while? Is it really worth the time? The fee? The logistics? While the Capstan team is likely to respond with an emphatic “yes” to all of the above, we understand that in order to make […]
Timing is Everything: New Rev. Proc. Clarifies Timeline Regarding QIP Eligibility
Timing is Everything: New Rev. Proc. Clarifies Timeline Regarding QIP Eligibility We love Qualified Improvement Property (QIP). And what’s not to love? This new classification of building improvements is the key to lucrative bonus depreciation, and doesn’t have to be made subject to a lease like Qualified Leasehold Improvements. Plus, the definition of QIP is […]
Broad Definition of Qualified Improvement Property Expands Availability of Bonus Depreciation
QIP is the New VIP: Broad Definition of Qualified Improvement Property Expands Availability of Bonus Depreciation The PATH (Protecting Americans Against Tax Hikes) Act of 2015 extended bonus depreciation for a record five years. This was indeed very big news, and it’s not surprising that it made a very big splash in the world of […]
Cost Segregation Reduces Tax Burden on Industrial Facilities
Cost Segregation Reduces Tax Burden on Industrial Facilities The cost segregation process can be performed on almost any type of building. By reclassifying commercial assets into shorter MACRS class-lives, cost segregation accelerates depreciation, increases cash flow, and reduces the overall tax burden in virtually every situation. However, due to the highly specialized nature of industrial […]
Ensuring Your Clients Receive Maximum Deductions This Tax Season
The Big Questions: Ensuring Your Clients Receive Maximum Deductions This Tax Season Suddenly it’s February. We’re knee deep in tax season and so busy that January flew right by. In all the hustle-bustle of the season, sometimes we can’t see the forest for the trees. Your commercial real estate clients rely on you for thoughtful […]
The Utility of Cost Segregation in Step-Up Situations
Don’t Step Away from Step-Ups: The Utility of Cost Segregation in Step-Up Situations Even among tax professionals, Section 754 is notorious for its complexity. Transfer of interest within a partnership, as well as other situations that involve “step-ups” in depreciable basis, are considered particularly sticky. However, step-up situations are a rich source of cost segregation […]
Obama Signs PATH Act Into Law
Obama Signs PATH Act Into Law: Several Major Incentives Become Permanent, Bonus Depreciation Extended The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) was signed into law by President Obama on December 18, 2015. This Act contains a number of subsections that create tremendous opportunity for commercial real estate owners. Over the years, […]
Cost Segregation – the Sky’s the Limit!
The sheer variety of ways in which cost segregation can be utilized is staggering. Many people don’t realize that the technique can be applied to almost any type of income-producing property, in virtually any industry. Here at Capstan we’ve certainly seen our share of warehouses, multi-family properties, office buildings, and the like. However, in our […]