Real Estate Owners: Make the Most of Your Fixed Assets.
Accelerating depreciation has long been a strategy employed by real estate owners to take advantage of immediate tax savings. The Tangible Property Regulations and the recent Tax Cuts and Jobs Act have created significant opportunities that enhance the utility of cost segregation studies:
- Document the systems within your commercial real estate—breaking out real property, land improvements, and tangible personal property to help accelerate depreciation.
- Identify units of property within your assets to clarify which improvements can be expensed (yielding more immediate savings) and which must be capitalized (generating savings over a longer horizon).
- Following a major renovation or other disposition of property, document disposed assets for more thorough and accurate write-offs.