CPAs know it is imperative to refer clients to 3rd party consultants for various issues that require deep specialization in an area of tax. In many ways, these specialty tax firms act as an extension of your team and require coordination to deliver results that often have a material impact on a tax return. While … Read More
Author: Gian Pazzia
KBKG Tax Insight: Using Cost Segregation with Estate Planning
When a client dies, a critical estate planning area for tax professionals involves managing the step-up in basis on inherited assets for estate and income tax purposes. The general rule for real estate is that when a property is inherited, any gains built up during the decedent’s life are not recognized. The beneficiary also receives … Read More
KBKG Launches New Residential Cost Segregation Software
Press Release: Pasadena, California, December 1, 2016 – KBKG, a nationwide tax solutions firm headquartered in Pasadena, California, recently launched the Residential Cost Segregator™, an innovative cost segregation software which allows tax preparers and building owners to generate detailed cost segregation reports on smaller residential properties. The Residential Cost Segregator™ shatters previous conceptions that … Read More
Estate Planning Strategy Using Cost Segregation
Real estate owners and investors often use cost segregation studies to accelerate depreciation deductions, generate current income tax benefits, and improve cash flow. But did you know that a cost segregation study can also be used as a powerful estate-planning tool? One of the advantages of transferring property at death (rather than by lifetime gift) … Read More
Using Cost Segregation with Estate Planning
When a client dies, a critical estate planning area for tax professionals involves managing the step-up in basis on inherited assets for estate and income tax purposes. The general rule for real estate is that when a property is inherited, any gains built up during the decedent’s life are not recognized. The beneficiary also receives … Read More
Repair Regs – Another solution to “Elect-out” of Rev. Proc. 2015-20 to preserve missed deductions
The IRS has recently written on their website that eligible taxpayers may elect out of Rev. Proc. 2015-20 by filing a statement with their 2014 tax returns indicating their qualifying trade or business is not applying the simplified procedure of Rev. Proc. 2015-20. Qualified small business taxpayers who accept the relief of Rev. Proc. 2015-20 … Read More
Tangible Property Regs – Reconsidering Small Taxpayer Relief under RP 2015-20
Earlier this year, the IRS relieved small business taxpayers from having to file mandatory Form 3115’s to comply with the newly issued Tangible Property Regulations (TPRs). Accepting this relief under Rev. Proc. 2015-20 is done merely by filing of a federal tax return, leaving many CPAs unaware of the negative consequences of doing nothing. More … Read More
Practice Tool – Unit of Property & Major Component Chart for Buildings
KBKG strives to be a thought leader in the areas we service and we’re proud so many CPAs rely upon the tools we’ve created. For those applying the new Tangible Property Repair Regulations, the first step in a proper Repair vs. Capitalization analysis is to identify and understand the Unit of Property (UOP). For real … Read More
Dispositions of Tangible Property – IRS Restricts use of Discount Value Approach
In August, the IRS issued final regulations on dispositions of tangible depreciable property under Sec. 168 (T.D. 9689) that are generally effective for taxable years beginning on or after January 1, 2014. Taxpayers can realize significant benefits from these regulations by identifying building components that have been replaced or demolished in current or prior years. … Read More
IRS Releases R.P. 2014-54; Extends Deadline To Claim Retirement Loss Deductions!
On September 18, the IRS released an advanced copy of Rev. Proc. 2014-54, which provides guidance on certain changes in method of accounting for dispositions of tangible depreciable property. One of the most notable changes in this 93-page document is that the time for making a late partial disposition election has been extended for one … Read More