Tax Reductions through Cost Segregation

Tax Reductions through Cost Segregation

Tax Reductions through Cost Segregation

Tax reductions and tax deductions are both benefits of cost segregation. However, it would be inaccurate to term cost segregation a tax shelter. The IRS has written a manual titled Audit Techniques Guide that delineates methods to establish depreciation schedules and increase tax reductions.

Tax shelter is a moniker that implies a scheme designed to avoid taxes. Some tax shelters were legal and some were clearly illegal. Most of the tax shelters focused exclusively on tax benefits and did not have an economic basis. There is no IRS documentation defining proper methods for implementation of tax shelters.

Tax shelters included activity with the purchase and sale of stock, cattle, real estate (typically high leveraged) and oil and gas. These tax shelters often involved economic activity with a questionable or inaccurate interpretation of the law. In some cases, they involved a questionable economic activity with an accurate interpretation of the law. In other cases, there was no meaningful economic activity associated with the tax shelter.

Cost segregation is simply an IRS-governed method of accurately depreciating real estate and identifying tax reductions. There is no separate economic activity. The tax reductions and tax benefits resulting from cost segregation are substantial. Commercial real estate investors and owners of corporate real estate are amazed at the tax reductions it affords. The IRS's Audit Technique Guide provides a safe harbor for using cost segregation for real estate to increase tax reductions.

Cost segregation produces tax deductions and reduces federal income taxes across the country and in every size market. Below are just a few examples of where cost segregation generates meaningful tax reductions.

City:

Philadelphia, PA

Hartford, CT

New York, NY

Orlando, FL

Baltimore, MD

Tampa, FL

San Francisco, CA

Miami, FL

Washington, DC

Houston, TX

Albany, NY

Dayton, OH

Charlotte, NC

Des Moines, IA

Harrisburg, PA

Ft. Lauderdale, FL

Augusta, GA

Stockton, CA

Riverside, CA

Minneapolis-St. Paul, MN

Manchester, NH

Sacramento, CA

Charleston, SC

McAllen, TX

Syracuse, NY

St. Louis, MO

Jacksonville, TN

Omaha, NE

Madison, WI

Indianapolis, IN

Cost segregation produces tax deductions for virtually all property types.

Property Type:

Car wash facility

Medical facility

Skating rink

Community shopping center

Funeral home

Truck terminal

Motel

Regional mall

Nursing home

Racket club

Almost every industry, including the following, can generate cost-efficient tax deductions by using cost segregation.

Industry:

Warehousing and storage

Arts, Entertainment, and Recreation

Amusement parks

Day care facilities

Laundry facilities

Electrical component manufacturing

Automotive parts distributors

Beverage and tobacco product manufacturing

Leather product manufacturing

Transportation equipment manufacturing

O'Connor & Associates is a national provider of commercial real estate consulting services including federal tax reduction, cost segregation, due diligence, renovation upgrading cost analyses, tax return review and apartment inspections.

POST COMMENT

Oh! Pine Tree State: Wither Hast thou Gone? Why Virtual Assistants Are Cool Fun in Pattaya Karaoke nights at 10 Downing Street Vienna Oh Vienna Why Need Dehumidifiers? Uses of Various File Formats Spa weekend break in Turkey Finding an Ideal Gujarati Groom or Bride via Gujarati Matrimony Snow can damage your roof Dum Maro Dum Mit Jaye Gham mp3 Song - Anushka Manchanda Te Amo (Duet) mp3 song - Dum Maaro Dum (2011) Jaana Hai mp3 song Zubeen Garg Dum Maaro Dum (2011)