Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in…
Cost Segregation Blog by O'Connor Tax Reduction Experts
Interior Non-load-bearing Walls and Cost Segregation
As much as 95% of interior partitions and non-load-bearing walls are misclassified as short-life property. The IRS has guidelines as to when these assets may be considered personal property. Has your cost…
Cost Segregation and REITs… Explained. Improve financial results. Attract targeted investors.
REITs can benefit significantly from cost segregation studies. Cost segregation minimizes ordinary income to maximize return of capital and/or capital gain related distributions. It also creates flexibility to achieve various dividend objectives….
Top Way to Reduce Income Taxes for Commercial Property Owners
Almost everyone understands that depreciation helps increase cash flow by reducing reportable income. What if there was a way to “turbocharge” your depreciation and dramatically enhance your bottom line??? Active real estate…
Office Building Cost Segregation Finds Hidden Cash For Owners
Commercial investors are searching for ways to improve cash flow. One technique is office building cost segregation. How does cost segregation work? Commercial real property (not including the land) is depreciated over…
Landlords Use Apartment Building Cost Segregation To Reduce Tax Liability
One of the advantages of investing in commercial property such as apartment buildings. The IRS has provisions in the tax code to reduce your tax liability. Apartment building cost segregation allows landlords…
Tips to Reduce Income Tax for Real Estate Owners
Income taxes are a regrettable fact of life. Equally regrettable is that few real estate investors utilize the multitude of generous income tax benefits available to them. These benefits include cost segregation, depreciation,…
Abandonment Study Yields Tax Reduction
An abandonment study can legitimately generate a windfall of depreciation for the owner of investment or owner-occupied real estate. By increasing depreciation, substantial tax reduction can be effected. An abandonment study is appropriate when it…
Cost Segregation — Isn’t my CPA already doing this?
By Patrick O’Connor, MAI Commercial property owners typically use tax preparation specialists such as tax lawyers, CPAs and accountants. They reasonably assume these experts will maximize their tax deductions to minimize federal…
Cost Segregation: Why Are 90% of Real Estate Investors Overpaying Federal Income Taxes?
By Patrick O’Connor, MAI By ignoring generous IRS guidelines when establishing depreciation schedules, over 90% of real estate investors are unintentionally overpaying federal income taxes. In addition, they are paying federal income…