KBKG Tax Insight: How to Allocate Land vs. Building Values for Investment Property
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Allocating an investment property’s purchase price between land and depreciable improvements directly affects the deductions available to the owner. Land cannot be depreciated, while buildings and qualifying site improvements may be depreciated over their applicable recovery periods. Purchase agreements often specify a single … Read More
The Top Cost Segregation Providers in 2026 (Ranked & Compared)
Looking for the best cost segregation provider to maximize your income tax savings from commercial or residential real estate investments? In this guide, we compared top cost segregation firms based on a number of critical factors including ASCSP certifications, years in business, public review ratings, national reach with brick-and-mortar offices, leadership structure, technology, and breadth of services.
REIT Distribution Planning: How Cost Segregation Creates Deployable Cash
REITs often focus on maximizing shareholder value and maintaining strict compliance with REIT qualification rules. One of the most effective financial planning tools available is cost segregation…
Top Cost Segregation Software Tools
Over the last decade, online cost segregation tools have become extremely popular. While the self-guided tools provide a fast, efficient way to generate cost seg studies for thousands of real estate investors with smaller properties, what is the difference between them and how do they compare to a full cost segregation study…
Demolishing a Building? Cost Segregation Can Preserve Deductions In This Situation
If you are redeveloping a property and planning to demolish the existing building, cost segregation may still help, but only under the right circumstances. Most confusion in this area comes from ignoring timing and intent. If someone buys a property and tears it down…
The 2025 QPP safe harbor is here: NAICS codes and facility layouts decide the outcome
The IRS’s issuance of Notice 2026-16 provides interim guidance on Qualified Production Property (QPP) under IRC §168(n). While much of the notice establishes long-term structural rules, one of the most immediate and practical provisions is the 2025 safe harbor…
Why Pass-Through Entities Need Expert Guidance to Conduct a Cost Segregation Study
Cost Segregation studies are a powerful tax strategy that allows property owners to accelerate depreciation deductions, reduce current tax liability, and improve cash flow by reclassifying components of real property into shorter-lived asset categories. However, pass-through entities such as…
QPP eligibility update: When a related-party lease still counts as “your use”
For the past six months, one of the most common questions surrounding Qualified Production Property (QPP) has been: “Can we still qualify if our real estate is owned by a holding company and leased to our operating company?” Notice 2026-16 provides long-awaited clarity…
New IRS guidance for QPP – 100% write-off for U.S. production facilities
With 2025 tax filing season underway, the IRS has issued Notice 2026-16, providing interim guidance on the 100% bonus depreciation allowance for Qualified Production Property (QPP) under IRC §168(n). For taxpayers who placed qualifying industrial or manufacturing property in service after July 4, 2025, or who began construction after January 19, 2025, this guidance…
Return of Component Election for Bonus Depreciation Creates Major Tax Savings for Self-Constructed Projects
Taxpayers who started construction on any project prior to the 100% Bonus Depreciation change on January 20, 2025, may be stuck with 40% Bonus Depreciation, unless this new election is filed. IRS Notice 2026-11 was released on January 14, 2026, offering interim guidance under…
Why Pass-Through Entities Need Expert Guidance to Conduct a Cost Segregation Study
Cost Segregation studies are a powerful tax strategy that allows property owners to accelerate depreciation deductions, reduce current tax liability, and improve cash flow by reclassifying components of real property into shorter-lived asset categories. However, pass-through entities such as…
KBKG Launches CostSegregation.com, the Next-Generation of DIY Cost Segregation Software for Residential and Commercial Properties
PASADENA, CA – November 3rd, 2025 – KBKG, a leading provider of specialty tax solutions, announces the launch of Cost Seg Pro™, its most advanced cost segregation software yet. Cost Seg Pro™ allows both residential and commercial property investors to complete studies in minutes, starting at $495 per report. A Smarter, Faster Way to Complete … Read More
How Real Estate Professional Status Impacts Cost Segregation Tax Savings
See If You Qualify Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify By Malik Javed | Principal, Cost Segregation When real estate investors look for ways to reduce tax liability, Cost Segregation stands out as one of the most powerful strategies available. By accelerating depreciation deductions, property owners can unlock … Read More
Understanding Depreciation Recapture: What Real Estate Owners Need to Know
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See if you qualify By Malik Javed | Principal, Cost Segregation Owners of rental or commercial real estate have likely claimed depreciation deductions on their tax returns. While these deductions provide annual tax savings, upon sale of the property, the IRS may recapture some of those … Read More
Deep Dive: Manufacturing QPP Expensing Rules – Defining “Used by the Taxpayer”
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Lester Cook | Principal, Cost Segregation Who Can Claim QPP? Why “Used by the Taxpayer” is the Next Big Test IRC §168(n), introduced under the One Big Beautiful Bill Act, allows full expensing on certain real property used in qualified production. This new category is … Read More
Opportunity Zones and Cost Segregation: What Works and What Doesn’t Under the Latest Tax Law
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Eddie Price| Principal, Cost Segregation With the passage of the One Big Beautiful Bill Act (OBBBA), Opportunity Zones (OZ) have shifted from a temporary incentive to a permanent fixture, fundamentally altering how real estate investors should approach tax strategy. The bill creates new benefits specific … Read More
How Manufacturers Can Now Fully Expense Their Facilities and Real Property
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Lester Cook | Principal, Cost Segregation The 2025 One Big Beautiful Bill Act (OBBBA) introduced a significant opportunity for domestic manufacturers with the creation of Qualified Production Property (QPP) under new IRC §168(n). This new category allows eligible taxpayers to fully expense certain real estate … Read More
Real Estate Incentives Revitalized: What the OBBBA Means for Developers, Investors, and Owners
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Lester Cook | Principal, Cost Segregation The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, permanently restores and enhances key provisions of the Tax Cuts and Jobs Act of 2017. From 100% bonus depreciation and qualified production property expensing to Opportunity … Read More
OBBB Tax Bill Makes 100% Bonus Depreciation Permanent – What You Need to Know
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Amar Patel | Principal, Cost Segregation Real estate investors know that tax strategies can make all the difference in maximizing profits. One of the most powerful, yet underutilized, tools available is the short-term rental (STR) loophole. This allows real estate investors to utilize property-related rental losses … Read More
Why You Should Only Use a Certified Cost Segregation Professional
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube When Cost Segregation studies are conducted, professional standards and technical accuracy are critically important, especially as studies are subject to IRS scrutiny. The best way to assess a provider’s qualifications is to confirm whether the person conducting your study is a Certified Cost Segregation Professional (CCSP) … Read More
Form 3115 for CPA’s: Unlocking Missed Tax Deductions Without Amending Returns
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Many CPAs likely come across clients who have historically mis- or over-capitalized expenditures, particularly in real estate, retail or manufacturing. Fortunately, tax preparers don’t need to amend years of returns to correct these issues. The IRS offers a fix for this with Form 3115 (Application for … Read More
Navigating the Updated IRS Cost Segregation Audit Techniques Guide: What’s New?
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Amar Patel | Principal, Cost Segregation Cost Segregation remains one of the most powerful tax strategies for real estate investors, allowing them to accelerate depreciation and maximize deductions. On February 6, 2025, the IRS published the latest edition of the Cost Segregation Audit Techniques Guide (ATG), … Read More
How The Short-Term Rental Loophole & Cost Segregation Can Benefit Passive Investors
See If You Qualify See If You Qualify Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Amar Patel | Principal, Cost Segregation Real estate investors know that tax strategies can make all the difference in maximizing profits. One of the most powerful, yet underutilized, tools available is the short-term rental (STR) loophole. This allows … Read More
The Interplay Between Cost Segregation and a 1031 Exchange
When a property is acquired in a Section 1031 like-kind exchange, tax preparers should consider several facts before deciding how to best depreciate the carryover basis from a relinquished property. When a cost segregation study is also considered on the newly acquired property, additional analysis is recommended before finalizing the 1031 tax basis calculations. To … Read More
100% Bonus Depreciation Making a Comeback?
By Amar Patel | Principal, Cost Segregation In a speech to a joint session of Congress, President Trump outlined priority tax legislation expected later this year to restore provisions of the Tax Cuts and Jobs Act (“TCJA”), which includes “providing 100% expensing, retroactive to January 20, 2025”. This leads many to believe that 100% Bonus Depreciation … Read More
Six Ways Cost Segregation Remains Valuable as Bonus Depreciation Declines
Thought leadership provided by Eddie Price | Principal – Cost Segregation For a long time, the concept of cost segregation has been a powerful tax-saving strategy for real estate investors, enabling property owners to significantly increase their cash flow by accelerating depreciation on certain assets. With the phasing down of bonus depreciation — from 100% … Read More
Senate Votes on Tax Relief Bill for IRC 174 R&E Expenditures, Bonus Depreciation and Section 163(j)
By Jonathan Tucker | Principal, Research & Development Tax Credits In a significant move after months of waiting, the Senate voted on the highly anticipated tax relief for American Families and Workers Act, aimed at easing the financial burden on millions of Americans. Championed by Senate Majority Leader Chuck Schumer to bring a vote in … Read More
KBKG Tax Insight: Leverage Section 179 to Offset Declining Bonus Rates
By Eddie Price & Amar Patel | Principals – Cost Segregation After years of 100% bonus depreciation, rates have recently fallen to 80% for 2023 and 60% for 2024, which has motivated some real estate investors to look for additional strategies to offset taxable income. Section 179 of the tax code offers taxpayers the opportunity … Read More
Addressing Misconceptions Surrounding Transferable Tax Credits
With the renewable energy market continuing to expand, the popularity of transferable tax credits for funding projects and reducing corporate tax liabilities is becoming increasingly common. The signing of the Inflation Reduction Act in 2022 has further fueled interest among both developers and investors in this space, which has resulted in increased fraud that the … Read More
KBKG Tax Insight: IRS Issues Warning on Scams Involving Energy Tax Credit Transfers
By Amar Patel, CPA, CSSP | Principal – Cost Segregation The Internal Revenue Service (IRS) recently published an article issuing a warning about a new scam involving the misrepresentation of rules surrounding the transferability of clean energy tax credits under the Inflation Reduction Act (IRA). KBKG Insight: The market for transferable clean energy credits, notably … Read More
How the Inflation Reduction Act Expanded Transferable Tax Credits Eligibility
The Inflation Reduction Act (IRA) significantly altered the landscape of federal clean energy tax credits, offering new opportunities for monetization and strategic financial planning. For solar developers, these changes present a unique chance to optimize tax benefits through expanded options for investment and production tax credits in renewable energy projects. A New Paradigm for Tax … Read More
Final Regulations Released on Transferability of Clean Energy Tax Credits
By Mike Cornell | Senior Manager, Cost Segregation On Thursday, April 25, the Department of Treasury and Internal Revenue Service issued final regulations regarding the transferability of certain clean energy tax credits in a taxable year, including specific rules for partnerships and S corporations. The Inflation Reduction Act added Section 6418 to the tax code, … Read More
KBKG Tax Insight: Overcoming Passive Losses from Self-Rental Property Using the Grouping Election
KBKG Tax Insight: Overcoming Passive Losses from Self-Rental Property Using the Grouping Election By Eddie Price & Amar Patel | Principals – Cost Segregation When business owners acquire a building that they intend to use primarily to operate their business, they often set up a separate LLC to hold the building and land asset that … Read More
KBKG Tax Alert: Proposed Bill Fixes 174 Capitalization and Cuts Off New ERC Claims
KBKG Tax Alert: House passes proposed bill to Fix 174 Capitalization, Extend 100% bonus depreciation, and Cut Off New ERC Claims, now in Senate consideration. Proposal Aims to Boost Businesses with Immediate Deductions for Domestic Research and Experimental (R&E) Expenditures and Capital Investments on qualified property while reining in the Employee Retention Credit (ERC). The … Read More
Cost Segregation for Airbnb, Vrbo, HomeAway
Cost Segregation for Short-Term Rental Hosts By Amar Patel, Principal, Cost Segregation If you’re an Airbnb, Vrbo, or HomeAway host, you’re likely familiar with the complexities of managing and optimizing rental properties. What you may not be aware of, however, is a powerful financial tool that can help you maximize your property’s financial benefits while minimizing … Read More
Unlocking Hidden Value: The Power of Cost Segregation Studies
Last Updated on 08/27/2026 By Amar Patel | Principal, Cost Segregation Unlocking Hidden Value: The Power of Cost Segregation Studies A cost segregation study is a tax strategy that accelerates depreciation deductions on real estate by reclassifying building components into shorter recovery periods. Cost segregation can be a valuable strategy for real estate owners looking … Read More
KBKG’s Residential Cost Segregator
KBKG’s Residential Cost Segregator Cost segregation is a powerful tool for maximizing tax benefits on real estate investments. This IRS-approved strategy can speed up depreciation, but harnessing the solution’s full potential requires professional expertise. That’s where KBKG’s Residential Cost Segregator® comes in. Our revolutionary program spotlights tax advantages typical owners miss. Explore residential cost segregation, … Read More
Accelerate Deductions for Better Cash Flow With KBKG
Accelerate Deductions for Better Cash Flow With KBKG Tax professionals often face residential cost segregation challenges when dividing expenses for multi-unit properties. If this struggle sounds familiar, you might be missing the necessary tools and resources for a successful real estate cost segregation allocation. KBKG streamlines and simplifies the process with our Residential Cost Segregator® … Read More
KBKG’s Approach to Residential Cost Segregation
KBKG’s Approach to Residential Cost Segregation Here at KBKG, we conduct in-depth cost segregation studies for a number of clients. Our studies can help you reduce your tax burden and save money. We realize that performing a residential cost segregation study can be intimidating, so we work closely with you every step of the way. … Read More
Residential Cost Segregation – The Basics
Residential Cost Segregation – The Basics A real estate cost segregation study is a tax planning process used by property owners who have constructed, purchased, or remodeled any type of income-generating property. The study allows them to accelerate depreciation deductions, which can defer state and federal income taxes and increase cash flow. If you are … Read More
Can You Do Cost Segregation on Residential Rental Property
Can You Do Cost Segregation on Residential Rental Property? If you’re a real estate investor or property owner, you’ve probably heard about cost segregation and how it can help you maximize tax benefits. But can you do cost segregation on residential rental property? The answer is “yes.” Below, we explore how cost segregation works for … Read More
KBKG Tax Insight: Qualified Improvements, Bonus Depreciation, and 179
KBKG Tax Insight: Qualified Improvements, Bonus Depreciation, and 179 By John Manolos | Senior Manager – Cost Segregation With the passage of the CARES Act on March 27, 2020, Congress addressed the much anticipated “Retail Glitch” associated with the 2017 Tax Cuts and Jobs Act (TCJA). This rule previously prevented investments in qualified improvement property … Read More
Cost Segregation: How It Can Benefit Your Business
Cost Segregation: How It Can Benefit Your Business Tax planning is a vital part of any company’s financial strategy. At its core, it focuses on legal ways of optimizing tax breaks and reducing liabilities. Maybe you’ve heard the term “cost segregation” used by tax professionals. You may wonder, “What is a cost segregation study and … Read More
Cost Segregation for Residential Property
Cost Segregation for Residential Property A cost segregation real estate analysis is a tax planning method used by companies and individuals who have remodeled, constructed, or purchased any type of real estate. This method allows them to accelerate depreciation deductions, which in turn defers federal and state income taxes and increases cash flow. If you … Read More
Can You Do Cost Segregation for Commercial Real Estate?
Can You Do Cost Segregation for Commercial Real Estate? Claiming tax benefits can help you avoid losing money on your commercial real estate investments, especially if you intend to operate your properties for years to come. A common tax benefit is to claim your buildings on your tax form as depreciations. Using cost segregation for … Read More
Cost Segregation and Allocation for Mixed-Used Properties: What You Need To Know
Cost Segregation and Allocation for Mixed-Used Properties: What You Need To Know Seasoned tax professionals and CPAs understand the importance of cost segregation real estate studies. Mixed-use buildings present notable tax complexities, especially with applicable IRS regulations. A Certified Cost Segregation Professional (CCSP) can help with navigating these complexities. A condo tax basis allocation and … Read More
How Does Cost Segregation Work for Residential Real Estate?
How Does Cost Segregation Work for Residential Real Estate? Cost segregation in real estate is a way for real estate investors to deduct from their taxes the amount of depreciation or the decline over time of the value of their property. Real estate cost segregation presents an opportunity for property owners to pay fewer taxes … Read More
Choosing the Best Cost Segregation Provider
Choosing the Best Cost Segregation Provider Last Updated on 07/24/26 By Amar Patel, Principal, Cost Segregation A cost segregation study is an IRS-accepted tax strategy that helps investment property owners accelerate depreciation deductions by identifying property components that may depreciate faster than the building structure itself. Instead of waiting decades to recover the full tax benefit of a building, … Read More
The Power of Cost Segregation Analysis: Maximizing Tax Benefits for Residential Real Estate Owners
The Power of Cost Segregation Analysis: Maximizing Tax Benefits for Residential Real Estate Owners Tax professionals and CPAs strive to provide the best possible services and advice to their clients. This often requires a delicate balance between acting in a client’s best interest while complying with applicable laws. When seeking to extend tax benefits for … Read More
Tax Professionals for Cost Segregation
Tax Professionals for Cost Segregation A cost segregation real estate analysis is a type of strategic tax tool allowing individual property owners and companies who have constructed, modified, or remodeled any property to accelerate cash flow by increasing depreciation deductions. This depreciation can help property owners defer state and federal income taxes to some degree. … Read More
Best Cost Segregation Studies for Real Estate
Best Cost Segregation Studies for Real Estate Cost segregation is a tax planning tool that allows property owners who have purchased, constructed, or expanded any type of building to improve their cash flow and reduce their tax burden by deferring state and federal income taxes. When you purchase or construct a building, you are also … Read More
KBKG Experts Appointed to the Board of the American Society of Cost Segregation Professionals
Eddie Price, CCSP, was elected President of the American Society of Cost Segregation Professionals (ASCSP) for a two-year term, effective August 1, 2023. Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded, or remodeled real estate to increase cash flow by accelerating depreciation deductions and deferring … Read More
KBKG Promotes Amar Patel to Principal of Cost Segregation
PASADENA, Calif. – KBKG, a tax credits and incentives consulting firm, has announced the promotion of Amar Patel to Principal of Cost Segregation. Patel is based out of the firm’s Southeast office and most recently spent the past two years as the Director of Cost Segregation. “Amar and I have known each other our entire … Read More
This Month’s Webinars
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email info@kbkg.com. Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
KBKG to Exhibit AFWA Women Who Count Conference
Attending the AFWA Women Who Count Conference is Principal, Lester Cook, Manager, Sasha Brenecki, and Regional Director Todd French who will represent KBKG at the event, which takes place October 25th-28th in Chicago, Illinois at The Drake. About the Event This is the first time in two years that the AFWA will host its annual … Read More
KBKG to Exhibit and Sponsor Tal Glenn Memorial Golf Tournament
Attending the 2022 Tal Glenn Memorial Golf Tournament is our Principal, Eddie Price, and our Regional Director, Matthew Geltz, who will represent KBKG at the event, which takes place on October 24th in Tyler, Texas at The Cascades Golf & Country Club. About the Event The Tal Glenn Memorial Golf Tournament is an annual golf … Read More
KBKG Tax Insight: IRS Updates Audit Technique Guide for Cost Segregation
IRS Updates Audit Technique Guide for Cost Segregation On June 1st of, 2022, the IRS published the latest edition of the Cost Segregation Audit Technique Guide (ATG). The Cost Segregation ATG assists IRS examiners during audits by providing an understanding of technical information, examination techniques, and what to look for when reviewing cost segregation reports. … Read More
KBKG to Speak and Exhibit at FICPA MEGA CPE Conference
Research & Development Tax Credit Principal, Jonathan Tucker and Director, Ian Williams will be speaking on Research and Development Tax Credits Overview and Recent Updates. Their presentation is taking place on Thursday, June 9th from 10:30 AM – 11:20 AM. Regional Director, Chad Niehaus is speaking in a 25-minute Ted-Talk, a new way of presenting … Read More
KBKG to Exhibit and Sponsor the NJCPA Convention & Expo
This year, Sumit Sharma, Paul McVoy, Alexis McClellan, and Justin Brumfield will be representing KBKG at the NJCPA Convention & Expo. This conference takes place from June 14th to June 17th at NJCPA Convention & Expo in Atlantic City. About the NJCPA Convention & Expo The NJCPA Convention & Expo knows that there are mega-changes … Read More
KBKG Tax Insight: IRS and Treasury Release Rev. Proc. 2022-14 Earlier This Year
The IRS and Treasury released Rev. Proc. 2022-14 earlier this year, updating and superseding the current list of automatic method changes. Background Taxpayers generally cannot change from an established accounting method to a different method unless they first obtain IRS consent to change from the established accounting method. Taxpayers must obtain IRS consent to change … Read More
KBKG Tax Insight: Pull Tax-Free Cash Out of 1031 Exchanges with Cost Segregation
As featured in Accounting Today Real estate owners have limited options to pull cash out of a 1031 exchange without having to pay income tax. With proper tax planning, this problem can be solved with a cost segregation study. The application of cost segregation for this purpose may vary depending on the tax rules in … Read More
KBKG to Speak at TXCPA Dallas Convergence 2022
Alex Martin, Transfer Pricing Principal, will be speaking at TXCPA Dallas Convergence on Monday, May 16th. He’ll be joined by Bill Taylor, William Long, Matthew Geltz, Mike Cornell, and Emily Kennedy from our Dallas Fort-Worth office. This event is taking place at the Omni Frisco Hotel in Frisco, Texas. About the TXCPA Dallas Convergence TXCPA … Read More
KBKG to Speak at SCACPA Spring Splash Conference 2022
Our Research and Development Tax Credit Director, Ian Williams, is speaking while Principal, Jonathan Tucker, and Regional Director Chad Niehaus are representing KBKG at the SCACPA Spring Splash Conference 2022. This event takes place from May 12th and May 13th in Spartanburg, SC. Our Southeast team specializes in Cost Segregation, Green Building Tax Incentives (45L … Read More
KBKG Speaking at New York Multifamily Summit 2022
>Our Cost Segregation & Fixed Assets Principal, Sumit Sharma, will be speaking at NYMS this year during the Value Add panel discussion. Along with him, Alexis McClellan and Justin Brumfield will represent KBKG. The New York Multifamily Summit will take place on Thursday, May 12th in New York, New York. This event is New York’s … Read More
KBKG Representing at TXCPA Austin Accounting & Finance Leaders Conference 2022
Eddie Price, Matthew Geltz, and Bill Taylor will be representing KBKG at the TXCPA Austin Accounting & Finance Leaders Conference on Thursday, April 21st in Austin, Texas. Our Texas team specializes in Cost Segregation, Green Building Tax Incentives (45L and 179D), Transfer Pricing, and more.. About the TXCPA Austin Accounting & Finance Leaders Conference The … Read More
KBKG Promotes Sumit Sharma to Principal Overseeing Cost Segregation in the Northeast
PASADENA, CA, – Nationwide tax specialty firm KBKG promoted Sumit Sharma, CCSP, to principal effective January 1, 2022. Sumit leads the firm’s cost segregation practice in the northeast out of their Manhattan-based office. As a Principal, Sumit specializes in Cost Segregation and Fixed Assets. Sumit has over 17 years of experience conducting fixed asset depreciation … Read More
KBKG Representing at Hunter Investment Conference 2022
Our Cost Segregation Director, Amar Patel, will be representing us at the Hunter Hotel Investment Conference on Tuesday, March 22nd through Thursday, March 24th in Atlanta, Georgia. As providers of Cost Segregation, 45L Tax Credits, Employee Retention Tax Credits, and more; we offer a suite of unique tax saving strategies for the real estate industry. … Read More
Feature: How Can Savvy Property Owners Save Millions in Taxes Legally?
As featured in the Dave Lorenzo, Inside BS Podcast. Our Cost Segregation Principal, Lester Cook, was featured in the Inside BS Show, a podcast hosted by Dave Lorenzo, Consultative Sales Expert at the Dave Lorenzo Company, LLC. Lester shares with Dave the ways he helps property owners legally take advantage of the tax code to … Read More
KBKG Speaking at Ohio Chamber of Commerce – 2022 Business Tax Conference
KBKG spoke at the Ohio Chamber of Commerce 2022 Business Tax Conference on Tuesday, January 25th and Wednesday, January 26th. Lester Cook presented on Cost Segregation, Paul McVoy spoke on R&D Tax Credits, and Todd French represented the firm at the exhibit booth. See below for session details. Tuesday, January 25th | 1:45PM EST Cost … Read More
KBKG Tax Insight: Illinois Decouples from Bonus Depreciation for 2021 Tax Year and Forward
Back on June 17, 2021, Governor J.B. Pritzker signed into law SB2017, the state’s FY 2022 budget legislation. Among many other noteworthy items within that piece of legislation, Illinois officially decouples from federal bonus depreciation for tax years ending on or after December 31, 2021. Historically, the State of Illinois has decoupled from bonus depreciation … Read More
Feature: What Is a Cost Segregation Study and When Does It Make Sense?
As featured in the Small Business Tax Savings Podcast Recently, Mike Jesowshek, CPA, Founder of JETRO & Associates, interviewed our Cost Segregation Principal, Lester Cook. Topics discussed include cost segregation, how a cost segregation study is performed, the benefits of a cost segregation study, and more. A Cost Segregation Study dissects the construction cost or … Read More
KBKG Tax Insight: Bonus Depreciation for Gas Stations with Convenience Stores
Acquiring or constructing a gas station with a convenience store (“C-store”) can be a lucrative addition to a real estate portfolio. Current rules allow investors to immediately write off all the improvements if certain requirements are met, and the property is placed in service after September 27, 2017. This went into effect after the Tax … Read More
KBKG Tax Insight: Form 3115 May be Used for Changing to ADS Depreciation for Residential Rental Property
The IRS on June 17, 2021 issued Revenue Procedure 2021-28, which provides procedures for taxpayers to change to the alternative depreciation system (“ADS”) for certain residential rental property placed in service prior to January 1, 2018, held by an electing Real Property Trade or Business (RPTOB). KBKG Insight: A RPTOB that made the election under … Read More
KBKG Tax Insight: Iowa Now Conforms to IRC §168(k)
Governor Kim Reynolds recently signed into law Senate File 619 relating to a multitude of state and local tax issues. Included within this law is the retroactive applicability of Federal Bonus Depreciation rules for qualified assets placed into service on or after January 1, 2021. Additionally, the State of Iowa will remain decoupled from the … Read More
Learn about Bonus Depreciation with Lester Cook, CCSP at MCIPA’s Tax Professionals and the IRS: Successfully Working Together Conference
KBKG Principal Lester Cook, CCSP will be virtually presenting Bonus Depreciation Update at MICPA’s Tax Professionals and the IRS: Successfully Working Together Conference. Taking place on June 9th from 3:10 PM – 4 PM Eastern time, this presentation will provide information on bonus depreciation and other related depreciation issues. Lester will clarify when bonus depreciation … Read More
Changing to ADS Recovery Period for Residential Rental Property with a 163(j) Election
Overview Treasury and the IRS are contemplating additional procedural guidance that will assist taxpayers with compliance related to the ADS recovery period change for residential rental property. This is required under the Tax Cuts and Jobs Act (TCJA) when Real Property Trades or Businesses (RPTOBs) make the election under 163(j) to avoid interest expect limitations. … Read More
KBKG Tax Insight: Guide to Expensing HVAC Costs
As featured in AICPA Tax Adviser – April 15, 2021 Heating, ventilation, and air conditioning (“HVAC”) replacement costs can be significant expenses for businesses that own or lease real estate. This guide is intended to help tax practitioners distinguish between deductible repairs and more extensive work that must be capitalized. Each year, tax professionals who … Read More
Updates to KBKG’s Qualified Improvement Quick Reference Chart
The Qualified Improvements Quick Reference Chart is KBKG’s most sought-after resource by CPAs across the nation. We have updated the chart to reflect recent changes. Qualified Improvement Property (QIP) is defined as any improvement made by the taxpayer to an interior portion of a building that is nonresidential real property as long as the improvement … Read More
![[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation](https://www.kbkg.com/wp-content/uploads/Press-Release-–-KBKG-Welcomes-Two-New-Directors-to-Atlanta-Based-Operation.jpg "[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation")
[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation
Atlanta, Georgia – Nationwide tax specialty firm KBKG hired two new Directors, Amar Patel and Ian Williams, as part of their Southeast practice. Both Directors join KBKG with over 25 years of combined experience in Cost Segregation and Research & Development Tax Credits, two key services offered by the firm to CPAs and businesses. As … Read More
KBKG Tax Insight: Final Sec. 1031 Regulations Do Not Materially Affect Cost Segregation Studies
As featured in AICPA Tax Adviser – February 4, 2021 In November 2020, the IRS issued final regulations defining real property for Sec. 1031 like-kind exchanges (T.D. 9935). The new regulations were needed because the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, amended Sec. 1031 so personal property is no longer eligible for a … Read More
The October 2026 Tax Deadline is Approaching – Now’s the Time to Request Your Cost Segregation Studies
Last Updated on 08/25/2026 If you or your clients are considering cost segregation studies before the October 15, 2026 tax deadline, it is important to begin the process early. The period leading up to major tax deadlines is one of the busiest times of year, so starting now can help avoid filing delays. Key Takeaways There is still … Read More
KBKG Tax Insight: IRS Releases Guidance on Bonus Depreciation
On November 6, 2020, the IRS released Revenue Procedure 2020-50 providing guidance on implementing the most recent bonus depreciation regulations. These regulations, issued in September 2020, addressed feedback and slightly revised provisions of the 2019 proposed bonus regulations. Since the Tax Cuts and Jobs Act bonus depreciation rules have changed over the iterations of proposed … Read More
How Two Andersen Alumni Help Thousands of Businesses Secure Overlooked Tax Incentives to Improve their Bottom Line
The following article is featured on Andersen Alumni. Former alumni Gian Pazzia and CJ Aberin live by the Arthur Andersen motto: Think Straight, Talk Straight. As founding partners of KBKG, one of the largest independent specialty tax firms in the country, they have worked to preserve that legacy both professionally and personally. While both Gian … Read More
KBKG Tax Insight: Final Regulations Provide Additional Changes to Bonus Depreciation Rules
On September 21, 2020, the IRS and Treasury Department finalized the last set of final regulations related to bonus depreciation. The originally proposed versions of these regulations were issued on September 24, 2019. The changes made were primarily in response to feedback submitted by tax preparers. Following are a few highlights. Qualified Improvement Property: On … Read More
KBKG Tax Insight: Proposed 1031 Regulations Negative Impact on Cost Segregation – KBKG’s Comments to the IRS
On June 12, the IRS issued proposed regulations that define what real property is for purposes of 1031 exchanges. This was in response to changes in the Tax Cuts and Jobs Act (TCJA) that no longer allows personal property from being eligible for 1031 exchange. In their current form, the proposed regulations may create significant … Read More
Comments for Proposed Regulations 1.1031(a)-3 (REG-117589-18)
This letter was originally published by the ASCSP. Our Principals Lester Cook,CCSP and Malik Javed,CCSP are board members of the ASCSP. The American Society of Cost Segregation Professionals (ASCSP) wishes to commend the Treasury Department (Treasury) and the Internal Revenue Service (IRS) for the thoughtful effort clearly reflected in Proposed Regulations 1.1031(a)-3 (REG-117589-18) defining real … Read More
KBKG Tax Insight: Partial Dispositions & Deduction of Demolition Costs
Subsequent to the acquisition of a property, taxpayers often incur capital expenditures related to property renovations and improvements. As this work occurs, the existing components are often removed or disposed of. IRC Section 1.168(i)-8(d)(2) allows taxpayers to realize a gain or loss by making an election to partially dispose the adjusted basis of the aforementioned … Read More
KBKG Tax Insight: Concurrent IRS Form 3115 Template (DCN 244 & 7)
On April 17, 2020, the IRS released Rev. Proc. 2020-25 outlining how to implement the Qualified Improvement Property (QIP) changes that were part of the CARES Act of 2020 using Form 3115, Change in Accounting Method. Section 6.03(4)(b), states that a taxpayer making a change 244 to correct QIP and changed related to depreciation recovery … Read More
KBKG Tax Insight: Form 3115 Template for Qualified Improvement Property (QIP) Changes
On April 17, 2020, the IRS released Rev. Proc. 2020-25 outlining how to implement the Qualified Improvement Property (QIP) changes that were part of the CARES Act of 2020 and modify certain elections under Section 168 using Form 3115, Change in Accounting Method. KBKG authored a comprehensive overview of the new procedures that can be … Read More
KBKG Tax Insight: Opportunity Zones and Cost Segregation
As Featured in Accounting Today Opportunity Zones are garnering increased interest across the country. Taxpayers who meet the requirements for investing in an Opportunity Zone can potentially take advantage of increased depreciation deductions through cost segregation, further decreasing their tax liability. KBKG Insight: There is an opportunity to take advantage of cost segregation for certain … Read More
KBKG Tax Insight: Qualified Improvement Property (QIP) Guidance from the IRS: Rev. Proc. 2020-25
For the most up-to-date information on Qualified Improvement Property, see our latest post. Rev. Proc. 2020-25 was issued on April 17, 2020, providing guidance on how to implement Qualified Improvement Property (QIP) corrections made within the CARES Act. With this guidance, the IRS provides several options for taxpayers who have placed QIP into service during … Read More
KBKG Tax Insight – Net Operating Loss Rules Amended in CARES Act Provides Tax Planning Opportunities
For the most up-to-date information on Qualified Improvement Property, see our latest post. Under the new Coronavirus Aid, Relief, and Economic Security Act (CARES Act), net operating losses (NOLs) which are generated in 2018, 2019, or 2020 can now be carried back five years. The CARES Act also repeals the 80% income limitation for NOL … Read More
KBKG Tax Insight: Qualified Improvement Property (QIP) Guidance from the IRS
For the most up-to-date information on Qualified Improvement Property, see our latest post. In response to our previous release last week, Qualified Improvement Property (QIP) Technical Correction in CARES Act, KBKG has received several inquiries related to the changes in QIP law. Since that post, we have also learned more through discussions with high ranking … Read More
KBKG Tax Insight: Qualified Improvement Property (QIP) Technical Correction in CARES Act
For the most up-to-date information on Qualified Improvement Property, see our latest post. With the passage of the CARES Act on Friday, March 27, 2020, Congress addressed the much anticipated “Retail Glitch” associated with the 2017 Tax Cuts and Jobs Act (TCJA). This rule previously prevented investments in qualified improvement property (QIP) from qualifying for … Read More
KBKG Tax Insight: Maximizing Deductions on Like-Kind Exchanges Using Cost Segregation
As featured in AICPA The Tax Advisor When a property is acquired in a Sec. 1031 like-kind exchange, tax preparers should consider several facts before deciding how to best depreciate the carryover basis from a relinquished property. When a cost segregation study is also considered on the newly acquired property, additional analysis is recommended before … Read More
KBKG Tax Insight: IRS to Increase Scrutiny of Building Partial Dispositions, Provides Guidance to Field Agents
As featured in Accounting Today As a result of the disposition regulations that were finalized in 2014, taxpayers are able to claim a partial disposition of a building component and recognize a loss on their tax return in the year of disposition. The partial disposition election is one of five issues targeted by the IRS … Read More
Tax Deadline is Approaching – Now’s the Time to Request Your Cost Segregation Studies
Are you or your clients interested in performing a cost segregation study before the upcoming March 15 tax deadline? KBKG is committed to timely work. Since the months leading up to a tax deadline is our busiest time of year, we encourage you to start the process now to avoid any delays in filing your … Read More
KBKG Tax Insight: Impact of Bonus Depreciation for Companies with Floor Plan Financing
As a follow up to the KBKG Tax Insight article, Impact of Final Regulations and New Proposed Regulations for Additional First Year Depreciation Deduction, released last week providing a summary of the new final proposed regulations for additional first year depreciation deduction, we now dive deeper into the impact of floor plan financing indebtedness upon … Read More
KBKG Tax Insight: Impact of Final Regulations and New Proposed Regulations for Additional First Year Depreciation Deduction
For the most up-to-date information on Qualified Improvement Property, see our latest post. On September 13, 2019, the IRS and Treasury Department released the much-anticipated final regulations that provide guidance regarding additional first year bonus depreciation deductions under section 168(k) of the Internal Revenue Code (REG-104397-18). While the final regulations clarified some questions, there are … Read More
KBKG Tax Insight: Final Regulations and New Proposed Regulations for Additional First-Year Depreciation Deduction
For the most up-to-date information on Qualified Improvement Property, see our latest post. On September 13, 2019, the IRS and Treasury finalized first-year bonus regulations (REG-104397-18). In tandem, they issued additional proposed regs (REG-106808-19) for bonus nuances. Here are a few highlights: Final Regulations: Qualified Improvement Property (QIP) – 2018 and beyond: The IRS and … Read More