The IRS has challenged the classification components of cost segregation studies done for major corporations such as AmeriSouth XXXII, Ltd. They are calling into question the validity of cost segregation studies and its “savings” to taxpayers. The courts have generally ruled in favor of the IRS, however, even after such rulings, many believe that the … Read More
Cost Segregation
Gian Pazzia, CCSP, is re-elected on the Board of Directors for the American Society of Cost Segregation Professionals
Gian has been on the board of ASCSP since 2007 and is also the Chair of the organizations Technical Issues/Standards committee. Gian was one of the first professionals in the country to earn industry certification in Cost Segregation. Gian Pazzia, CCSP, has been elected for an additional 2 year term on the Board of Directors … Read More
Side Effects of Cost Segregation
The Journal of Accountancy recently published an article titled “Side effects of cost segregation.” “Increased current cash flows and net-present-value savings from accelerated tax depreciation resulting from cost-segregation studies have been discussed in the JofA and other professional literature. But the initial cost-segregation decision can determine later tax side effects, both positive and negative. This … Read More
ASCSP Board Member Comments on Recent Regulations
Gian P. Pazzia, CCSP and Principal at KBKG, Inc. works collectively with the American Society of Cost Segregation Professionals (ASCSP) to provide insights on current tax issues including ASCSP’s comments to the IRS on the Repair v. Capitalization Temp. Regs., ASCSP’s industry commentary on PECO Foods v. Commissioner and also ASCSP’s comments on the AmeriSouth … Read More
Tax Alert: IRS takes a stand on Cost Segregation for Apartment Buildings
Summary: In the recently released AmeriSouth XXXII., Tax Court Memo 2012-67, the IRS makes its first meaningful strike in its attempt to marginalize the benefits of cost segregation studies for residential rental property. For many taxpayers and CPAs, this is a complete surprise. However, KBKG clients have been warned for over a year that this was … Read More
Cost Segregation Studies: Best Practices – Seminar
Gian Pazzia will be speaking in an upcoming Strafford live phone/web seminar entitled “Cost Segregation Studies: Best Practices” scheduled for Thursday, April 5, 1:00pm-2:50pm EDT. Because of your affiliation with KBKG, you are eligible to attend this seminar at 50% off.A thorough cost segregation study can materially reduce federal income taxes (by segregating personal property … Read More
Decision in Peco Foods, Inc. v. Commissioner May Affect Your Ability to Perform a Cost Segregation Study
While the law regarding the binding nature of an asset allocation agreement under IRC Section 1060 is well established, KBKG notes the specific facts and circumstances of the Peco Foods case in making our recommendations below. Regarding the terms of a purchase agreement that includes real estate, taxpayers and their advisors should ensure that any … Read More
Cost Segregation Can Directly Improve Cash Flow for Auto Dealers
Author: Scott Zarret | Publication: Dealer Tax Watch View pdf article
Cost Segregation Audit Techniques Guide
Author: IRS | Publication: IRS Website http://www.irs.gov/businesses/article/0,,id=134180,00.html
Release the Cash in Your Property by Applying Cost-Segregation Techniques
Author: Annette Bajek | Publication: East Bay Business Times If your clients own commercial or residential rental property and dutifully deduct 1/39th or 1/27.5th of its value each year, they are leaving money on the table. The 39-year figure represents the depreciable life of a commercial building while 27.5 years represents the depreciable life of … Read More