for cost segregation
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cost segregation
Building Type: Cannabis Grow Facility
| Summary of Benefits | Results |
|---|---|
| Additional Tax Deductions in First Year | $5,629,032 |
| Net Present Value (NPV) Over 10 Years | $1,970,692 |
| NPV Over Remaining Life of Property | $1,991,385 |
| *Benefits typical for tax returns filed 2018-2022 |
Building Allocation After Study
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
KBKG Tax Insight: How to Allocate Land vs. Building Values for Investment Property
As featured in Accounting Today Calculating land and building values for tax purposes is a critical step toward maximizing your available tax deductions from depreciation. This is because the law says you can only depreciate items that wear down over time (i.e., the building and not the land). Since most real estate purchase agreements do … Read More
