As the markets continue to adjust to a post-pandemic world with high interest rates and inflation, multi-family new construction projects and acquisitions remain an area of growth. As more investors move into this area, maintaining a competitive edge is more important than ever, and taking advantage of cost segregation and its benefits can give investors the boost needed to stay ahead.
Cost segregation is the process of identifying property components that are considered "tangible personal property" or "land improvements" under the federal tax code. The primary goal of a cost segregation study is to identify all construction-related costs that can be depreciated over a shorter tax life (typically 5, 7, and 15 years) than the building (39 years for non-residential real property or 27.5 years for residential rental property).
You’re a CPA. You direct large sums of money, prepare tax returns, bestow financial advice, conduct audits…What would you consider your paramount duty for the success of your business?
Keep abreast of new tax regulations? Stay dialed in to current economic trends? Continue industry skills training?
A hefty American stout. A biting English bitter. A robust German Bock. A fine Irish Red. A citrusy Belgian witbier. Beer. You love them all. So much so, you decided to make your own. You wanted to experiment, create new brews, and share your concoctions with your friends.
“If you build it, he will come.”
The 1989 movie Field of Dreams hit a home run at the box office and drafted this inspiring line to number 39 in the American Film Institute’s 100 Greatest Movie Quotes of All Time. For those who haven’t seen the magical, feel-good movie: a ghost of baseball past repeatedly whispers these words to Ray, a young corn farmer and baseball aficionado.
Half-truths, misconceptions, and myths fly about our world like a colony of “blind” bats awakened for the night: Napoleon was short, don’t wake a sleepwalker, you can see the Great Wall of China from space, the ‘five-second rule,’ duck quacks don’t echo, bulls hate red…
Have you had the pleasure of playing the real estate investment boardgame Monopoly? For anyone who’s shuffled the game's distinctive pieces across the board, “bought” and “sold” teeny houses and hotels, lost a pseudo fortune to a well-invested opponent, or scored some of that characteristically colorful money with a fortuitous Community Chest card, you know it’s a game of strategy. Your friends who scrutinized their investments and calculated every move usually won the game.
As a CPA, you want to provide your clients with the best service possible. Part of superior service includes saving them the most money, wherever and whenever you can. And a cost segregation study can answer that call to help discover more hidden cash. Read on to find out how.
You are a savvy business owner. Part of your business acumen includes knowledge of potential tax credits that can benefit your bottom line. However, the words “potential for audit” linger in the back of your mind.
Book Reports. Back in school, many of us agonized over the time-consuming, rule-laden amalgamation of facts and theories. Sometimes you were permitted to pick the topic, sometimes the teacher did. But the teacher always laid down the requirements: double-spaced; 800 to 1,000 words; typed (or printed if you go back that far); include a cover page with your name, date, etc.
