Understanding the legal background and rationale for property taxpayer cost allocation is crucial for comprehending cost segregation studies and their intricacies. Based on the IRS Cost Segregation Audit Technique Guide, O’Connor will…
Quick History of Depreciation 1913 To have a better understanding of cost segregation studies and its complexities, it is important to first learn the legal framework and history behind why property taxpayers…
O’Connor’s blog series covering, is here to educate and guide you to conduct a successful cost segregation study, as well as the different methodology, requirements compliant with the IRS, and examples dependent…
In 2024, O’Connor performed a cost segregation study for a retail property owner in Oklahoma where the end result identified almost $700K in accelerated depreciation by leveraging 100% bonus depreciation. O’Connor has…
As currently outlined in the Tax Cuts and Job Act of 2017, bonus depreciation is on track to sunset by 2027. Weigh in with your opinion: Do you think the new administration…
If you own a business, you’re probably familiar with the fundamentals of depreciation. The government permits you to deduct a portion of the cost of an asset you buy or build from…
Cost Segregation studies are a valuable tool that can provide business owners tax benefits allowing for improved cash flow and enhanced return on investment. Bonus Depreciation is one aspect of cost segregation…
Cost segregation is a strategic tax planning tool that, by depreciating certain components of a property at an accelerated rate, has the potential to shelter taxable income. Commercial real estate owners and…
Commercial property owners may use bonus depreciation to significantly reduce income taxes. Cost Segregation is not a new concept, but provisions contained within the Tax Cuts and Jobs Act of 2017 have…
Cost Segregation Increases Cash Flow for Commercial Property Owners Cost Segregation Studies (CSS) have become more common because this Internal Revenue Service (IRS)-approved process reduces income tax and increases cash flow. Intelligently…