Reduce Taxes on Condo Sales in Mixed-Use Developments with Tax Basis Allocation Studies

12/01/2017

Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property. Consequently, there may be a significant understatement of cost basis for residential condominium units resulting in higher taxable gains upon sale. This is most common within vertical mixed-use developments where residential condos are stacked … Read More

KBKG Video: Top 5 Things You Should Know About Cost Segregation

11/15/2017

Are you a tax professional looking for an easy way to explain Cost Segregation to your clients? This 3-minute video helps building owners understand why they should consider Cost Segregation for their building and covers the top 5 things they need to know to get started. Cost Segregation is a commonly used strategic tax planning … Read More

New Tax Reform Proposal Makes Deductions More Valuable in 2017

10/06/2017

On Thursday, September 27, Republican leaders in Congress and the Trump administration released the Unified Framework for Fixing Our Broken Tax Code. Among the many ideas outlined within the plan is to reduce the corporate tax rate to 20% and provide a maximum tax rate of 25% for business income from flow through entities of … Read More

New Qualified Improvement Property Category in 2016

09/18/2017

For the most up-to-date information on Qualified Improvement Property, see our latest post. Many tax professionals are still unclear about the newest classification of building improvements eligible for bonus depreciation when placed in service on or after January 1, 2016. That’s understandable considering there has been over a dozen additions or changes to rules relating … Read More

KBKG Insight: Does a Cost Segregation Study Increase the Likelihood of Audit?

08/25/2017

One of the most common concerns that is raised regarding Cost Segregation Studies is whether it increases the likelihood of an IRS audit down the road. While it’s well documented that these studies are accepted by the IRS if performed properly, there isn’t much evidence suggesting the implementation of a cost segregation study on a … Read More

KBKG Insight: Tax Court Rejects Taxpayer’s Land vs. Building Allocation

06/13/2017

On May 8, 2017, the U.S. Tax Court released Summary Opinion 2017-31 to conclude that a county assessor’s allocation to land and improvement values were more reliable than the taxpayers proposed values.  The tax court noted they could not find any authority that suggests a taxpayer is qualified to allocate the value of the property … Read More

KBKG Tax Insight: IRS Takes Controversial Position on Building Placed in Service Dates

05/11/2017

For the most up-to-date information on Qualified Improvement Property, see our latest post. Internal Revenue Service in Action on Action on Decision 2017-02 announced that it will continue to litigate the issue surrounding placed in service dates for certain buildings that have received their certificate of occupancy but aren’t ready and available for their “specifically … Read More

KBKG Tax Insight: IRS Updates Cost Segregation Audit Techniques Guide

04/18/2017

The Internal Revenue Service (IRS) released a relatively substantial update to their Cost Segregation Audit Techniques Guide (ATG) in order to incorporate various tax and legal developments since it was first released. Originally published in 2004, the Cost Segregation Audit Techniques Guide assists IRS examiners during audits by providing an understanding of technical information, examination … Read More

KBKG Tax Insight: Online Cost Segregation Savings Calculator Provides Instant Estimated Tax Projection for any Building

03/22/2017

KBKG’s complimentary online cost segregation tax savings calculator provides instant, estimated tax projections and is easy to use. Just enter the building details and instantly receive a summary detailing the additional depreciation deductions each year generated by a cost segregation study. “KBKG’s free Cost Segregation Calculator is quick and easy when I need a high-level … Read More