Building Type: Office, General
| Summary of Benefits | Results |
|---|---|
| Additional Tax Deductions in First Year | $1,267,504 |
| Net Present Value (NPV) Over 10 Years | $367,476 |
| NPV Over Remaining Life of Property | $303,655 |
| *Benefits typical for tax returns filed 2018-2022 |
Building Allocation After Study
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 Airbnb, Vrbo, HomeAway 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 your tax liability – Residential … Read More
