In recognition of Small Business Week, here’s a quick tax tip to fuel your business: Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the cost of an eligible asset instead of recovering the amount over the tax life of the asset. The Tax Cuts and Jobs … Read More
Reproduced with permission from Daily Tax Report, 62 DTR 12, 4/2/19. Copyright _ 2019 by The Bureau of National Affairs, Inc. (800-372-1033) https://news.bloombergtax.com/daily-tax-report/insight-tax-insight-the-impact-of-tcja-on-cost-segregation-and-like-kind-exchange Like-kind exchange has been a popular tax deferral tool for decades. Under IRC 1031, a taxpayer can defer tax on gain from the sale of a business or investment property if it … Read More
For the most up-to-date information on Qualified Improvement Property, see our latest post. Momentum may be building in Congress towards correcting a significant clerical error in the Tax Cuts and Jobs Act (TCJA). The error, known to some as the “retail glitch,” prevents investments in qualified improvement property (QIP) from qualifying for bonus depreciation. The … Read More
In 2018, the tax reform changes made cost segregation studies more valuable than before. Under the new law, any building components with a tax recovery period of 20 years or less, are eligible for 100% Bonus Depreciation. Historically, bonus depreciation only applied to newly constructed property, but now it’s available for any acquired property. These … Read More
For the most up-to-date information on Qualified Improvement Property, see our latest post. With the 2017 tax year behind us, tax professionals are laser focused on the various new rules presented by the recent Tax Cuts and Jobs Act (TCJA) effective for the 2018 tax year. One of the most significant changes related to real … Read More
If you are a taxpayer that owns multiple building improvement properties which are similar in construction, utilizing a statistical sampling along with cost segregation can greatly reduce the fees and resources needed to allocate each property for tax depreciation. Pairing this with an accounting method change to claim missed cost segregation opportunities over multiple years … Read More
Eddie Price, Director of KBKG, a nationwide tax credits, incentives, and cost recovery firm, was recently elected to the board of directors for non-profit organization, the American Society of Cost Segregation Professionals (ASCSP), for a subsequent two-year term. ASCSP was founded in 2006 to address the growing need for credentials, technical standards, education, and a … Read More
This article is featured in Accounting Today and Tax Pro Today. On August 8th, 2018 the IRS published proposed regulations (REG-104397-18) that provide guidance regarding the additional first year depreciation deduction under section 168(k) of the Internal Revenue Code (Code). These proposed regulations reflect changes made to the Tax Cuts and Jobs Act (TCJA) to … Read More
Recently, the IRS Large Business and International division highlighted five issues that it will be targeting in its “compliance campaign” audit strategy this year. One of the issues on its radar is the partial disposition election for buildings and its structural components. Treasury Regulations provide guidelines for recognizing gain or loss on the disposition of … Read More
Tax preparers and their clients often cannot recognize quality differences among cost segregation service providers, leading to buying decisions based on who proposes the lowest fee or promises the highest tax benefit. However, the real test of quality is how the cost segregation results stand up in an IRS audit. What are the consequences of … Read More