Building Type: Restaurant, Fine Dining
| Summary of Benefits | Results |
|---|---|
| Additional Tax Deductions in First Year | $625,550 |
| Net Present Value (NPV) Over 10 Years | $181,360 |
| NPV Over Remaining Life of Property | $149,862 |
| *Benefits typical for tax returns filed 2018-2022 |
Building Allocation After Study
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
