The IRS recently released Rev. Proc. 2016-29, which lists automatic method changes and provides procedures for making them. Form 3115’s filed on or after May 5, 2016 must follow the updated rules. Background. Taxpayers make accounting method changes for numerous reasons, such as claiming missed depreciation from a Cost Segregation study, reclassifying capital expenditures as … Read More
Cost Segregation
KBKG Video: Using Cost Segregation with Estate Planning
In an article recently published by the AICPA, Using Cost Segregation in Estate Planning, our subject matter expert, Gian Pazzia, CCSP, details the ability to create permanent tax savings after a death occurs through an often overlooked aspect of the step-up in basis tax law. Our short video explains the mechanics of how this strategy … 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
Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations
The IRS recently issued Revenue Procedure 2015-56 providing a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More
Late Partial Dispositions – It’s Not Too Late for Fiscal Year-end Taxpayers
While the opportunity to file a late partial disposition election ended for calendar year taxpayers, fiscal year-end taxpayers still have time to review depreciation schedules for these missed deductions. In the context of a building, a late partial disposition occurs generally when any building component, such as a roof, has been removed in a prior tax … Read More
IRS Releases Retail & Restaurant Safe Harbor Related to Tangible Property Regulations
On November 20, 2015, the IRS released Revenue Procedure 2015-56, providing certain “qualified taxpayers” engaged in the trade or business of operating a retail establishment or a restaurant a safe harbor accounting method for costs incurred related to remodeling and refreshing of their “qualified buildings.” “Qualified taxpayers” include those conducting activities within NAICS codes 44 … Read More
Cost Segregation study medical office building Denton Texas
Summary: Cost Segregation study of a recently renovated medical office building in Denton, Texas. Total improvement cost:$279,814.02.Cost Segregation Study Results: 5 year property: $173.319.74 (38.06%) 39 year property: $106.494.28 (61.94%)Building Details: The medical office building in Denton, Texas was leased and then renovated and places in service in 2012.These renovations included cabinetry, interior doors, finishes, … Read More
Eddie Price joins KBKG as Cost Segregation Director
We are pleased to announce that we recently hired Eddie Price as the Director of our Cost Segregation department. Eddie has over 30 years of cost segregation experience dating back to the Investment Tax Credit period. He is a Certified member of the American Society of Cost Segregation Professionals and currently serving as the Secretary … Read More
Gian Pazzia, CCSP, of KBKG elected President of ASCSP (2013 – 2015)
PASADENA, CA – KBKG congratulates Gian Pazzia, CCSP on his recent election as President of the American Society of Cost Segregation Professionals (ASCSP). “I’m looking forward to the opportunity to further develop and promote the American Society of Cost Segregation Professionals (ASCSP). With representation from Big Four all the way down to boutique cost segregation … Read More
Taxpayer Negligence Penalty for Poor Cost Segregation Study
Summary: In the recently released Chief Counsel Memo #20125201F, the IRS makes it clear that even if you engage a third party to perform a cost segregation analysis, taxpayers cannot avoid penalties for aggressive positions taken in the cost segregation report. The taxpayer attended a presentation that addressed open-air parking structures in which the presentation … Read More