Have a Fat Tax Bill? Have You Thought About the R&D Tax Credit?

Have a Fat Tax Bill? Have You Thought About the R&D Tax Credit?

04/19/2019

Are you a business owner that is unhappy with your recent tax bill? If you have not explored it yet, the Research and Development (R&D) tax credit can provide significant benefits to your business’ bottom line. Chances are you could be missing out on a dollar-for-dollar reduction in your federal and state income tax liability. … Read More

KBKG to Sponsor Ag+Bio+Science Start-up Showcase in Indianapolis

KBKG to Sponsor Ag+Bio+Science Start-up Showcase in Indianapolis

04/12/2019

On Tuesday, April 23rd, KBKG will sponsor the Ag+Bio+Science Start-Up Showcase presented by AgriNovus Indiana and FoundryX. The firm’s Midwest practice is led by firm Principal, Lester Cook, who will be onsite providing tax insights with Regional Director, Kyle Ernsberger. The 3rd annual event offers an opportunity for entrepreneurs leading innovative agbioscience start-ups to present … Read More

[Free Webinar] Opportunity Zone Deals: Separating Facts from Fiction – May 21st

[Free Webinar] Opportunity Zone Deals: Separating Facts from Fiction – May 21st

04/09/2019

Are you confused about Opportunity Zone Funds? Join us for an interactive webinar on Tuesday, May 21st as we answer your questions and discuss the latest regulations and developments, real estate tax, fund structuring considerations to get deals funded and closed in today’s marketplace. To register for our new webinar, please click below. More about … Read More

Myth – Claiming R&D Tax Credit Increases the Likelihood of an IRS Audit

Myth – Claiming R&D Tax Credit Increases the Likelihood of an IRS Audit

04/08/2019

The Research & Development Tax Credit is a federal benefit (also available in many states) that was enacted to promote growth, innovation, and inspire advancements in all areas and facets of business. The credit is an undoubtedly beneficial incentive for businesses large and small. However, many companies are hesitant to take advantage of the credit … Read More

KBKG Tax Insight: The Impact of TCJA on Cost Segregation & Like-Kind Exchange

KBKG Tax Insight: The Impact of TCJA on Cost Segregation & Like-Kind Exchange

04/02/2019

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

Tax Insight: Senate and House Updates on Tax Extenders for 2018-2019

Tax Insight: Senate and House Updates on Tax Extenders for 2018-2019

03/07/2019

Senate Update Last Thursday, February 28, 2019, Senate Finance Committee Chairman Chuck Grassley (R. Iowa) and Ranking Member Ron Wyden (D. Oregon) introduced bipartisan legislation to retroactively extend tax extenders for 2018 and 2019 while also providing disaster tax relief benefits to those affected by major disasters in 2018. “Congress needs to get out of … Read More

Tax Insight: Tax Extender Update from Senator Chuck Grassley

Tax Insight: Tax Extender Update from Senator Chuck Grassley

02/22/2019

On Thursday, February 14, 2019, Senate Finance Committee Chairman Chuck Grassley (R. Iowa) addressed tax policy and various provisions that KBKG and the Real Estate Roundtable have been monitoring closely. In his speech, Senator Grassley expressed his commitment to pursue tax extenders and rejection of press reports suggesting that some provisions may no longer be … Read More

Press Release: KBKG Names Lester Cook, CCSP Principal

Press Release: KBKG Names Lester Cook, CCSP Principal

02/07/2019

Chicago, Illinois – February 7, 2019 – Nationwide tax specialty firm KBKG recently promoted industry veteran Lester Cook to Principal. Lester leads the firm’s Midwest practice, including a team of engineers and specialists based out of the firm’s Chicago office. Lester joins nine other principals on KBKG’s leadership team. His primary areas of focus are … Read More

Press Release: KBKG Names John W. Hanning, CCSP Principal

Press Release: KBKG Names John W. Hanning, CCSP Principal

02/07/2019

Atlanta, Georgia – February 7, 2019 – Nationwide tax specialty firm KBKG recently promoted area resident John W. Hanning to Principal. John leads the firm’s Southeast practice, including a team of engineers and specialists based out of KBKG’s Atlanta office. John joins nine other principals on KBKG’s leadership team. John’s primary responsibilities include servicing capital … Read More

KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections

KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections

02/07/2019

Calculating and documenting the Internal Revenue Code Section 41 Credit for Increasing Research Activities (“Research Credit” or “R&D Credit”) is an intricate and often burdensome undertaking. This process is complicated during the throes of busy season. Fortunately, the Internal Revenue Service (“IRS”) has afforded taxpayers additional time to claim a R&D credit via making a … Read More

Tax Reform Makes it Easier to Generate Deductions with Cost Segregation

Tax Reform Makes it Easier to Generate Deductions with Cost Segregation

01/18/2019

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

Impact of the Government Shutdown on Real Estate Tax Policy

Impact of the Government Shutdown on Real Estate Tax Policy

01/18/2019

The longest government shutdown in U.S. history is creating more uncertainty for the current and future tax landscape. As the border wall standoff delays guidance necessary to properly implement tax reform, taxpayers are left wondering how to timely file their 2018 tax returns without ultimately having to amend down the road. Congress currently hasn’t been … Read More

KBKG Tax Insight: Updates to “Qualified Improvement Property”

KBKG Tax Insight: Updates to “Qualified Improvement Property”

11/09/2018

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 estate improvements is the new eligibility criteria for qualified improvement property (QIP). The … Read More

KBKG Tax Insight: R&D Tax Credit – Qualified Research Expenses for Software Development Activities

KBKG Tax Insight: R&D Tax Credit – Qualified Research Expenses for Software Development Activities

09/17/2018

What software development activities and expenditures can be included in an R&D Tax Credit claim for software projects? Companies performing qualified research in creating or improving their software may qualify for federal and state R&D tax credits for the software development activities they are already conducting. These credits are a dollar-for-dollar reduction in federal and … Read More

KBKG Tax Insight: Utilize Statistical Sampling with Cost Segregation

KBKG Tax Insight: Utilize Statistical Sampling with Cost Segregation

09/04/2018

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

KBKG Tax Insight: Major PATH Act<sup>1</sup> Changes to the R&D Tax Credit

KBKG Tax Insight: Major PATH Act1 Changes to the R&D Tax Credit

08/27/2018

Major PATH Act2 changes to the R&D Tax Credit for the years beginning after December 31, 2015: The federal R&D Tax Credit has provided taxpayers conducting qualified research a significant tax benefit since it was first signed into law by President Reagan in 1981. Although billions of dollars worth of R&D credits were claimed each … Read More

An Interesting Thread To Pull; The South Carolina R&D Tax Credit

An Interesting Thread To Pull; The South Carolina R&D Tax Credit

08/20/2018

Originally published article by Joseph Toppe from South Carolina Manufacturing Group on August 2, 2018. Stop me if you’ve heard this one before, “South Carolina is a branch manufacturing state.” They tell us there’s not enough headquartering here, not enough research and development, but what if I told you the Palmetto State has a solution, … Read More

Eddie Price Elected to ASCSP Board of Directors

Eddie Price Elected to ASCSP Board of Directors

08/17/2018

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

Partial Disposition Election for Buildings Being Targeted by IRS

Partial Disposition Election for Buildings Being Targeted by IRS

06/18/2018

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

KBKG Tax Insight: R&D Credit Opportunity – Improving an Existing Product

KBKG Tax Insight: R&D Credit Opportunity – Improving an Existing Product

06/11/2018

Businesses who are creating a brand-new product may be aware that the expenses associated with the cost of developing the prototype, or first article, of that product can qualify for the Research & Development (R&D) tax credit1. Qualifying expenses can include employee wages, materials used in the construction of the prototype and any third-party contractors … Read More

Bill Reeb, Kip Dellinger, and Michael Platt Join KBKG’s Newly Formed Advisory Board

05/20/2018

KBKG is proud to announce the addition of their prestigious advisory board formed earlier this year. KBKG’s advisory board members are comprised of trusted leaders in the industry known for being changemakers in their career and community. As advocates and ambassadors of KBKG, the board supports the executive and management teams through strategic analysis and … Read More

A Sense of Adventure – The Hanning Family

04/18/2018

KBKG’s southeast director and Cost Segregation expert John Hanning, was recently featured in Milton Neighbor, a local publication from the Milton/Alpharetta area. The piece, by Marchet Butler, beautifully captures the Hanning family and provides an insider’s look into who John is as a person in business and in family life. A Sense of Adventure The … Read More

KBKG Tax Insight: 179D Energy Efficiency Deductions Extended through 2017

04/03/2018

The 179D energy efficiency tax deduction has been extended retroactively for improvements completed by the end of 2017. This financial incentive is geared towards: 1) building owners (commercial or multifamily), 2) tenants making improvements, and 3) architects, engineers, and other designers of government buildings. The tax deduction is worth up to $1.80 per square foot … Read More

KBKG Atlanta to Host Grand Opening Celebration Post Tax Deadline

03/21/2018

ATLANTA, March 21, 2018 – KBKG, nationwide tax credits, incentives, and cost recovery firm, announced the opening of its southeast office earlier this year. The new location, situated in Alpharetta, Georgia, is just north of the perimeter in Atlanta. To celebrate, the Atlanta-based team is hosting a grand opening event on Thursday, April 26, 2018. … Read More

KBKG is Excited to Welcome Chad Niehaus to Our Atlanta Office

03/15/2018

We are very pleased to announce that Chad Niehaus has joined KBKG as a Regional Director in our Atlanta office. Chad will be developing new business opportunities and creating customized solutions to meet our clients’ needs. Prior to joining KBKG, Chad worked in the Human Capital Management industry, where his focus was on improving efficiencies … Read More

KBKG Tax Insight:  IRS Penalizes Cost Segregation Provider for Aiding and Abetting

KBKG Tax Insight: IRS Penalizes Cost Segregation Provider for Aiding and Abetting

03/06/2018

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

45L: The Energy Efficient Home Credit – Extended through 2017

03/05/2018

Homebuilders and multi-family developers have a unique opportunity to capitalize on an energy efficient home credit that is often overlooked. Low-rise apartment developers and homebuilders are eligible for a $2,000 tax credit for each new or rehabbed energy efficient dwelling unit that is first leased or sold by the end of 2017. Taxpayers also have … Read More

John Hanning Talks About New KBKG Office Opening in Atlanta

01/17/2018

We are proud to announce the opening of our new office in the southeast. The new location, led by KBKG leader and director, John Hanning, is in Alpharetta, Georgia just outside of Atlanta. We had the opportunity to catch up with John recently to hear about the new community and KBKG’s presence there. KBKG: What … Read More

KBKG Tax Insight: Avoid Common R&D Expense Documentation Errors

KBKG Tax Insight: Avoid Common R&D Expense Documentation Errors

01/14/2018

Business owners are often surprised to learn they may be able to claim the Research & Development (R&D) tax credit. The credit was originally created as way to encourage American companies to conduct R&D activities domestically. While initially thought to apply to large companies with formal R&D departments, “smaller businesses” in a wide range of … Read More

Minimize Gains on Sale of Condos in Mixed-Use Developments. Condo Tax Basis Allocation Studies

Minimize Gains on Sale of Condos in Mixed-Use Developments. Condo Tax Basis Allocation Studies

01/09/2018

Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property. Consequently, there may be a significant understatement of cost basis for residential condominium units resulting in higher taxable gains upon sale. This is most common within vertical mixed-use developments where residential condos are stacked … Read More

KBKG Tax Insight: Tax Reform & The R&D Tax Credit

KBKG Tax Insight: Tax Reform & The R&D Tax Credit

12/21/2017

It’s been over thirty years since the tax code has been modified to this extent. It has been a talking point for politicians since the Reagan administration brokered the bipartisan Tax Reform Act of 1986. However, the divide between the political parties have kept it a talking point since then, until now. The Tax Cuts … Read More

Reduce Taxes on Condo Sales in Mixed-Use Developments with Tax Basis Allocation Studies

Reduce Taxes on Condo Sales in Mixed-Use Developments with Tax Basis Allocation Studies

12/01/2017

Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property. Consequently, there may be a significant understatement of cost basis for residential condominium units resulting in higher taxable gains upon sale. This is most common within vertical mixed-use developments where residential condos are stacked … Read More

KBKG Tax Insight: Maximizing the Value of the R&D Tax Credit – Pharmaceutical & Life Sciences Industry

KBKG Tax Insight: Maximizing the Value of the R&D Tax Credit – Pharmaceutical & Life Sciences Industry

11/27/2017

It is no secret that many Pharmaceutical and Life Sciences companies (“Companies”) conduct research and development activities that qualify for numerous tax incentives, including the Research and Development (R&D) tax credit. Recent groundbreaking legislation created a level of certainty for tax planning purposes and also includes provisions geared towards providing significant benefits to small businesses … Read More

KBKG Video: Top 5 Things You Should Know About Cost Segregation

11/15/2017

Are you a tax professional looking for an easy way to explain Cost Segregation to your clients? This 3-minute video helps building owners understand why they should consider Cost Segregation for their building and covers the top 5 things they need to know to get started. Cost Segregation is a commonly used strategic tax planning … Read More

KBKG Tax Insight: How Tax Reform Bills Impact Real Estate

KBKG Tax Insight: How Tax Reform Bills Impact Real Estate

11/10/2017

The commercial real estate industry can expect significant changes in the event that tax reform is passed. Yesterday, the House Ways and Means Committee finished marking up and approved a tax reform bill introduced last week – the “Tax Cuts and Jobs Act” with the goal of voting on it before Thanksgiving. Simultaneously, the Senate … Read More

KBKG Tax Insight: Effects of Tax Reform on R&D & Orphan Drug Credits

KBKG Tax Insight: Effects of Tax Reform on R&D & Orphan Drug Credits

11/10/2017

Senate Republicans released their own version of a tax plan on Thursday (November 9, 2017), just a week after the House proposal was unveiled. Although both plans keep the research and development tax credit in place, changes in the tax code will require some additional planning for taxpayers currently claiming or those planning on claiming … Read More

KBKG Tax Insight: 5 Tips for Properly Vetting a Specialty Tax Consultant

11/07/2017

CPAs know it is imperative to refer clients to 3rd party consultants for various issues that require deep specialization in an area of tax. In many ways, these specialty tax firms act as an extension of your team and require coordination to deliver results that often have a material impact on a tax return. While … Read More

KBKG Tax Insight: Can You Claim 45L Tax Credits Retroactively?

11/03/2017

Yes, 45L tax credits can be claimed retroactively if they have been missed on prior tax returns. Since 45L tax credits are triggered in the year that a dwelling unit is first leased or sold, some taxpayers incorrectly think that the tax credits need to be claimed timely on current year tax returns. In reality, … Read More

KBKG Tax insight: Tips for Documenting Qualifying R&D Expenses

10/26/2017

Every company seeks effective ways to reduce their overall tax liabilities. Although traditional tax planning can certainly reduce business taxes, there is often a limited impact, leaving owners and managers searching for additional savings opportunities. The good news is that the Research and Development (R&D) Tax Credit is available to qualifying companies that have or … Read More

Breast Cancer Awareness Month: KBKG Warrior Dori Eden Shares Her Story

10/13/2017

In support of Breast Cancer Awareness Month, we’d like to highlight the strength and courage of one of our very own: Dori Eden. Dori was diagnosed with breast cancer in April of 2017 after a 3D mammogram came back negative, and she insisted on an ultrasound that ultimately detected the mass. In a recent interview … Read More

New Tax Reform Proposal Makes Deductions More Valuable in 2017

10/06/2017

On Thursday, September 27, Republican leaders in Congress and the Trump administration released the Unified Framework for Fixing Our Broken Tax Code. Among the many ideas outlined within the plan is to reduce the corporate tax rate to 20% and provide a maximum tax rate of 25% for business income from flow through entities of … Read More

IRS Issues Guidance Around ASC 730 and the R&D Tax Credit

09/29/2017

According to a new guidance released by the IRS, the Large Business and International Division which serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million are instructed to accept financial statements that comply with the GAAP standards as proof of Qualified Research Expenses (QREs). Ultimately, this new directive could lessen the formally … Read More

New Qualified Improvement Property Category in 2016

09/18/2017

For the most up-to-date information on Qualified Improvement Property, see our latest post. Many tax professionals are still unclear about the newest classification of building improvements eligible for bonus depreciation when placed in service on or after January 1, 2016. That’s understandable considering there has been over a dozen additions or changes to rules relating … Read More

KBKG Tax Insight: IRS Releases Tax Relief Opportunities for those Affected by Hurricane Harvey

08/29/2017

Updated 10/12/17 to include Caldwell, Comal, Guadalupe, Jim Wells, Milam, and San Augustine counties. Updated 9/20/17 to include Burleson, Grimes, Madison and Washington Counties. Updated 9/19/17 to include Bexar, Dallas, Tarrant, and Travis Counties. Updated 9/5/17 to include Austin, Batrop, DeWitt, Gonzales, Karnes, Lavaca, Lee, Polk, Tyler and Walker Counties. Updated 8/30/17 to include Colorado, … Read More

KBKG Insight: Does a Cost Segregation Study Increase the Likelihood of Audit?

08/25/2017

One of the most common concerns that is raised regarding Cost Segregation Studies is whether it increases the likelihood of an IRS audit down the road. While it’s well documented that these studies are accepted by the IRS if performed properly, there isn’t much evidence suggesting the implementation of a cost segregation study on a … Read More

45L: The Energy Efficient Home Credit – Infographic

08/14/2017

Homebuilders and multi-family developers have a unique opportunity to capitalize on an energy efficient home credit that is often overlooked. The 45L Tax Credit offers $2,000 per qualified dwelling unit that can also be claimed retroactively if missed in prior years; however, the clock is ticking. There is a limited timeframe for claiming missed credits, … Read More

KBKG Tax Insight: Maximizing the Value of the Orphan Drug Tax Credit

07/19/2017

  The Pharmaceutical and Life Sciences industry currently faces a range of issues, including the rising costs of discovery and development, major losses of revenue due to patent expirations, and increased complexities due to demanding regulatory requirements. Moreover, developers of orphan drugs must overcome a host of additional challenges that make it difficult to recoup … Read More

KBKG Tax Insight: Illinois Reinstates the R&D Tax Credit

07/07/2017

On Thursday, July 6th, the Illinois state legislature successfully voted to override Republican Governor Bruce Rauner’s veto, giving the state its first operating budget in two years.  Included in the $36 billion spending plan is an extension of the state’s research and development tax credit through December 31, 2021.  The research and development (R&D) credit … Read More

KBKG Tax Insight: Guide to Expensing Roofing Costs

06/21/2017

Each year, tax professionals who deal with real estate must evaluate the most recent building expenditures and determine which items should be written off as a repair expense or capitalized. The most common, and often significant, item that is evaluated is roofing-related work. In many cases, only a portion of the roofing system is replaced, … Read More

KBKG Insight: Tax Court Rejects Taxpayer’s Land vs. Building Allocation

06/13/2017

On May 8, 2017, the U.S. Tax Court released Summary Opinion 2017-31 to conclude that a county assessor’s allocation to land and improvement values were more reliable than the taxpayers proposed values.  The tax court noted they could not find any authority that suggests a taxpayer is qualified to allocate the value of the property … Read More

KBKG Tax Insight: Is a More Valuable R&D Credit Coming Soon?

06/08/2017

The R&D tax credit, which awards companies large and small for their innovative efforts and that was made permanent in 2015, could now be more lucrative with new bi‐partisan support. Senators Chris Coons (D‐DE) and Pat Roberts (R‐KS) have introduced a bill increasing the R&D credit up to 25% for companies that not only conduct … Read More

KBKG Tax Insight: New R&D Payroll Tax Credit Estimator tool

05/02/2017

The R&D tax credit is now permanent and for the first time ever, small businesses and start-ups can take advantage of this lucrative tax credit. Every year, billions of dollars are given to qualified businesses. Estimate your tax savings using our quick, simple R&D Payroll Tax Credit Calculator and save up to $250,000. Author: Kevin … Read More

KBKG Tax Insight: IRS Updates Cost Segregation Audit Techniques Guide

04/18/2017

The Internal Revenue Service (IRS) released a relatively substantial update to their Cost Segregation Audit Techniques Guide (ATG) in order to incorporate various tax and legal developments since it was first released. Originally published in 2004, the Cost Segregation Audit Techniques Guide assists IRS examiners during audits by providing an understanding of technical information, examination … Read More

KBKG Tax Insight: Online Cost Segregation Savings Calculator Provides Instant Estimated Tax Projection for any Building

03/22/2017

KBKG’s complimentary online cost segregation tax savings calculator provides instant, estimated tax projections and is easy to use. Just enter the building details and instantly receive a summary detailing the additional depreciation deductions each year generated by a cost segregation study. “KBKG’s free Cost Segregation Calculator is quick and easy when I need a high-level … Read More

KBKG Tax Insight: Gian Pazzia Discusses Cutting Edge Cost Segregation Software

03/14/2017

Recently, the Tax Resolution Institute invited KBKG subject matter expert, Gian Pazzia, to present a live discussion on KBKG’s new cutting edge software, the Residential Cost Segregator®. Watch the video for an overview on the topic and to learn how tax preparers can use the software to accelerate deductions on smaller residential properties, which was … Read More

Cost Segregation Software for Smaller Residential Properties

03/08/2017

Cost Segregation is now cost effective for smaller properties using KBKG’s online software designed for tax preparers and building owners. The Residential Cost Segregator® shatters previous conceptions that cost segregation should only be recommended for larger properties with a depreciable basis over $750,000. With the software, tax preparers can generate retirement deductions and faster depreciation … Read More

KBKG Tax Insight: Monetize R&D Tax Credits: Start-ups and Small Businesses

02/11/2017

What start-up or small business wouldn’t want an extra $250,000? Thanks to The Protecting Americans from Tax Hikes (“PATH”) Act of 2015, there is a new opportunity to monetize research and development (“R&D”) tax credits. Start-ups and small businesses who were previously unable to realize a benefit from this lucrative incentive should reassess R&D tax … Read More

KBKG Tax Insight: Deductions are More Valuable in 2016. Accelerate Them.

01/24/2017

It may have been one of the most hotly contested, controversial campaigns in living memory, but there can be no denying the outcome of the 2016 US presidential election is generally friendly for business. President Donald Trump and the Republican Party both agree that that tax reform is a top priority to help stimulate the … Read More

KBKG Tax Insight: Using Cost Segregation with Estate Planning

01/13/2017

When a client dies, a critical estate planning area for tax professionals involves managing the step-up in basis on inherited assets for estate and income tax purposes. The general rule for real estate is that when a property is inherited, any gains built up during the decedent’s life are not recognized. The beneficiary also receives … Read More

KBKG Launches New Residential Cost Segregation Software

12/01/2016

  Press Release: Pasadena, California, December 1, 2016 – KBKG, a nationwide tax solutions firm headquartered in Pasadena, California, recently launched the Residential Cost Segregator™, an innovative cost segregation software which allows tax preparers and building owners to generate detailed cost segregation reports on smaller residential properties. The Residential Cost Segregator™ shatters previous conceptions that … Read More

KBKG Tax Insight: New 2016 Qualified Improvement Property Criteria

11/02/2016

The new Qualified Improvement Property category put into effect in 2016 by the PATH Act will have a broad impact on almost all real estate owners for the near future by increasing the likelihood real property capital expenditures are eligible for bonus depreciation. Qualified Improvement Property (QIP) is defined as any improvement to an interior … Read More

The Residential Cost Segregator™ is now available for Condominiums & Townhomes

10/19/2016

The Residential Cost Segregator™ is KBKG’s latest online software that allows CPA’s to generate custom reports in just minutes, providing tax benefits to clients without hiring a specialist. For $399 per report, increase deductions by an average of $20,000 in the first five years. Available for Residential Rental Properties up to 6 units with a … Read More

KBKG Tax Insight: IRS Issues Final Regulations Surrounding the Qualification of Internal Use Software towards the R&D Tax Credit

10/04/2016

On October 4, 2016, the Internal Revenue Service issued final regulations which provide guidance on the qualification of internal use software (“IUS”) for purposes of the Section 41 Credit for Increasing Research Activities. The final regulations (TD 9786) address many of the comments received regarding the proposed regulations that were released in January of 2015. … Read More

KBKG Residential Cost Segregator™ Q&A

09/13/2016

Question: Did you have to file 3115 in order to partially dispose of assets retired in the current year, but purchased in a prior year? Answer: No. Current year partial dispositions do not require a Form 3115. Question: Are 5 year appliances (maybe $1,000/unit?) the main accelerated depreciation items from 27.5 year depreciation? It seems … Read More

Estate Planning Strategy Using Cost Segregation

08/19/2016

Real estate owners and investors often use cost segregation studies to accelerate depreciation deductions, generate current income tax benefits, and improve cash flow. But did you know that a cost segregation study can also be used as a powerful estate-planning tool? One of the advantages of transferring property at death (rather than by lifetime gift) … Read More

KBKG Tax Insight: Avoiding Cost Segregation Recapture Tax

08/04/2016

Savvy tax professionals that recommend Cost Segregation studies are well aware of the recapture tax rules that require taxpayers to pay back any accelerated tax deductions when the property is sold. After all, for the right situation, the net present value of those tax savings far exceeds any recapture tax payback. While the effects of … Read More

IRS provides 1 year extension to claim missed repair deductions on 2015 returns

06/03/2016

The recently released Rev. Proc. 2016-29 details new procedures for automatic accounting method changes, as discussed in a previous KBKG Tax Insight, and effectively provides a one year extension for taxpayers to implement many portions of the Tangible Property Regulations (TPR). Taxpayers are generally not permitted to make an automatic method change if they made … Read More

Deduct Your Demolished Building Using a GAA

05/18/2016

When a taxpayer acquires a building that may need to be demolished in the foreseeable future, they are often disappointed to learn from their tax preparer that they will lose all future tax depreciation deductions associated with the building. For many years, the tax code has not been forgiving to property owners who invest in … Read More

Research Tax Credit Opportunities for Architects and Engineers

05/17/2016

Architecture and engineering firms may want to take another look at the often forgotten Research & Development (R&D) Tax Credit. Many may be eligible for federal and state research credits without realizing it. Historically, the R&D Tax Credit was geared to only benefit large companies; mostly in the manufacturing, software, high-tech and pharmaceutical industries. However, … Read More

Rev. Proc. 2016-29: New Procedures for Automatic Accounting Method Changes

05/11/2016

The IRS recently released Rev. Proc. 2016-29, which lists automatic method changes and provides procedures for making them. Form 3115’s filed on or after May 5, 2016 must follow the updated rules. Background. Taxpayers make accounting method changes for numerous reasons, such as claiming missed depreciation from a Cost Segregation study, reclassifying capital expenditures as … Read More

PATH Act Improves Realty Tax Breaks, But…

05/05/2016

“As a general rule, the cost of commercial real estate improvements is recovered over a painfully long period of 39 years via straight line depreciation only. However, for specially defined categories of realty improvements, taxpayers may be entitled to the hat-trick of tax breaks: expensing under Section 179 of part of the cost of the … Read More

KBKG Video: Using Cost Segregation with Estate Planning

05/05/2016

In an article recently published by the AICPA, Using Cost Segregation in Estate Planning, our subject matter expert, Gian Pazzia, CCSP, details the ability to create permanent tax savings after a death occurs through an often overlooked aspect of the step-up in basis tax law. Our short video explains the mechanics of how this strategy … Read More

Using Cost Segregation with Estate Planning

03/31/2016

When a client dies, a critical estate planning area for tax professionals involves managing the step-up in basis on inherited assets for estate and income tax purposes. The general rule for real estate is that when a property is inherited, any gains built up during the decedent’s life are not recognized. The beneficiary also receives … Read More

PATH Act 2015 Extends and Modifies Important Tax Incentives for Architects & Engineers

02/05/2016

In December, Congress passed and the President signed The Protecting Americans from Tax Hikes (“PATH”) Act of 2015. The bill includes the extension of the 179D Tax Deduction and changes ASHRAE requirements for projects placed in service in 2016. The extender package also included the permanent extension AND expansion of the Research and Development (“R&D”) … Read More

Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations

01/13/2016

The IRS recently issued Revenue Procedure 2015-56 providing a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More

45L Tax Credit study 58 units apartments Texas

01/08/2016

KBKG performed a 45L Tax Credit energy analysis on a Texas residential complex and found that 12 of the 31 dwelling units sold in 2012 and 15 of the 27 dwelling units sold in 2013 provided a level of heating and cooling energy consumption that is at least 50 percent below that of a reference … Read More

R&D Tax Credit Expanded for Small & Midsize Businesses

12/18/2015

Congress is spreading some cheer this holiday season in the form of tax breaks for both businesses and individuals. The Protecting Americans from Tax Hikes (“PATH”) Act of 2015 was passed by both the House and the Senate and is a groundbreaking $650 billion tax extender bill aimed at providing taxpayers certainty and opportunity into … Read More

Promising News on Tax Extender Legislation

12/09/2015

On December 7, 2015, House Ways and Means Chairman Kevin Brady (R-TX) unveiled proposed legislation to extend a number of tax provisions that expired at the end of calendar year 2014. The proposed legislation would prevent tax increases on millions of families and businesses as the 2015 tax year filing season begins early next year. … Read More

Late Partial Dispositions – It’s Not Too Late for Fiscal Year-end Taxpayers

11/30/2015

While the opportunity to file a late partial disposition election ended for calendar year taxpayers, fiscal year-end taxpayers still have time to review depreciation schedules for these missed deductions. In the context of a building, a late partial disposition occurs generally when any building component, such as a roof, has been removed in a prior tax … Read More

IRS Releases Retail & Restaurant Safe Harbor Related to Tangible Property Regulations

11/20/2015

On November 20, 2015, the IRS released Revenue Procedure 2015-56, providing certain “qualified taxpayers” engaged in the trade or business of operating a retail establishment or a restaurant a safe harbor accounting method for costs incurred related to remodeling and refreshing of their “qualified buildings.” “Qualified taxpayers” include those conducting activities within NAICS codes 44 … Read More

Tangible Property Regs – Reconsidering Small Taxpayer Relief under RP 2015-20

08/18/2015

Earlier this year, the IRS relieved small business taxpayers from having to file mandatory Form 3115’s to comply with the newly issued Tangible Property Regulations (TPRs). Accepting this relief under Rev. Proc. 2015-20 is done merely by filing of a federal tax return, leaving many CPAs unaware of the negative consequences of doing nothing. More … Read More

Senate Finance Committee approves renewal of expired tax provisions

07/22/2015

Yesterday, on July 21st, the Senate Finance Committee repeated history by overwhelmingly approving a 2-year extension of over 50 expired tax provisions with a strong bipartisan vote, setting the stage for Congress to address later this year. The bill extends many long awaited business tax extenders that originally expired at the end of 2014 and … Read More

IRS Releases New Draft Form 3115

07/20/2015

On July 15th, The IRS posted onto its website an early released draft of Form 3115, Application for Change in Accounting Method. Form 3115 is used for accounting method changes, including complying with the Tangible Property Regulations (“TPRs”) as well as making depreciation adjustments resulting from Cost Segregation studies. The current version of Form 3115 … Read More

R&D Tax Credit for the Food & Beverage Industry

06/08/2015

With the challenge of feeding an ever growing population, food & beverage companies in the United States are forced to increase their research and development efforts to meet demand. In addition to providing more options, food and beverage manufacturers are fighting to keep up with trends in the market place which include the reduction in … Read More

House Passes Permanent Extension of the R&D Tax Credit

05/22/2015

On May 20th, the US House of Representatives passed HR 880, making the Research & Development Tax Credit permanent. The House bill is called the American Research and Competitiveness Bill of 2015. HR 880 provides no revenue offsets which will likely be met with a presidential veto, consistent with what President Obama has promised to … Read More

AICPA Recommends Increasing De Minimis Safe Harbor Limit

04/28/2015

In a recent letter, the American Institute of Certified Public Accountants (AICPA) commended the IRS for requesting input on increasing the De Minimis Safe Harbor limit for taxpayers without applicable financial statements (AFS) and provided a recommendation. The safe harbor generally allows taxpayers with AFS (which usually means audited financial statements) to immediately deduct $5,000 … Read More

John Hanning Joins KBKG’s Columbus, OH office

04/03/2015

KBKG is pleased to announce the addition of John Hanning, SCSP, to our growing team in Ohio. John is an expert in the Tangible Property Repair Regulations, Cost Segregation, Construction Tax Planning, and Fixed Asset Depreciation Reviews. Prior to joining, John worked in KPMG’s Accounting Methods and Credit Services Group where he focused on getting … Read More

Practice Tool – Unit of Property & Major Component Chart for Buildings

03/24/2015

KBKG strives to be a thought leader in the areas we service and we’re proud so many CPAs rely upon the tools we’ve created. For those applying the new Tangible Property Repair Regulations, the first step in a proper Repair vs. Capitalization analysis is to identify and understand the Unit of Property (UOP). For real … Read More

Tangible Property Final Regulations FAQ

03/09/2015

Section 162 of the Internal Revenue Code (IRC) allows you to deduct all the ordinary and necessary expenses you incur during the taxable year in carrying on your trade or business, including the costs of certain materials, supplies, repairs, and maintenance. However, section 263(a) of the IRC requires you to capitalize the costs of acquiring, … Read More

R&D Tax Credits for Agriculture and Farming

02/18/2015

It may be a surprise to many that food science activities typically associated with agriculture and farming can benefit from the Research & Development (R&D) tax credit. With advances in the food sciences and the challenge of feeding a growing population, those in the agriculture industry have the opportunity to claim and benefit from the … Read More

Filing Relief Issued on Tangible Property Regulations under Rev. Proc. 2015-20

02/16/2015

Numerous tax professionals have struggled with the compliance requirements under the final Tangible Property Regulations (TPRs) and when Form 3115, Application for Change in Accounting Method, is required. In response to public concerns, the IRS issued Rev. Proc. 2015-20 providing a simplified method of compliance for small business taxpayers. The new revenue procedure allows small … Read More

Tangible Property Regulations – IRS Considering Filing Relief

02/11/2015

The 2014 tax season is underway and CPAs and tax professionals are knee deep in the implementation of the final Tangible Property Regulations (TPRs). Tax practitioners have expressed frustration regarding the overly burdensome filing requirements of the new TPRs. The number one question KBKG is asked is whether change #184 is really necessary for every … Read More

Treasury Releases Proposed Regulations on R&D Credits for Internal Use Software

01/20/2015

On Friday, January 16, 2015, the Department of Treasury issued proposed regulations regarding the applicability and inclusion of Internal-Use Software as part of the IRC Section 41 ‘Credit for Increasing Research Activities,’ providing increased availability of the research and development tax credit for a greater number of entities, particularly small to mid-sized taxpayers. These proposed … Read More

Senate passes Tax Extenders for 2014; President Expected To Sign Into Law

12/17/2014

On Tuesday December 16th, the Senate passed H.R.5771 to extend several expired tax provisions and President Obama is expected to sign it into law in the coming days. The extension is retroactive from January 1, 2014, through the end of this year with minimal changes to the prior tax provisions. H.R.5771 was originally passed by … Read More

House on the verge of voting on Tax Extenders including the R&D Tax Credit

12/03/2014

Last week, congressional aides to Senate Majority Leader, Harry Reid (D-NV), and House Ways and Means Committee Chairman, Dave Camp (R-MI), were reportedly nearing a deal to address many of the tax provisions that expired at the end of 2013. The reported value of the deal was in excess of $400 billion. Many of these … Read More

Tax Strategy: The Year of Form 3115

11/07/2014

“It cannot be put off any longer. We have known about the new repair regulations in one form or another for several years now. We have had proposed and then temporary guidance that we could choose to follow or not follow. Now the guidance is finalized and complete. Tax years beginning on or after Jan. … Read More

How will the 2014 Midterm Elections Impact tax extenders?

11/07/2014

Not since World War II have Republicans had this large of a majority in Congress. The results from the 2014 midterm election are a staggering blow to Democrats. Prior to the 2014 midterm election, the Democrats had control in the Senate (53 out of the 100 seats with 2 Independents that caucus with the Democrats), … Read More

Dispositions of Tangible Property – IRS Restricts use of Discount Value Approach

09/23/2014

In August, the IRS issued final regulations on dispositions of tangible depreciable property under Sec. 168 (T.D. 9689) that are generally effective for taxable years beginning on or after January 1, 2014. Taxpayers can realize significant benefits from these regulations by identifying building components that have been replaced or demolished in current or prior years. … Read More

Research Tax Credit Opportunities for Architects and Engineers

09/11/2014

Although Architecture and Engineering (A&E) firms don’t often claim tax credits, many may be eligible for Federal and state research & development (R&D) tax credits without realizing it. Historically, the R&D tax credit was geared to only benefit large companies; mostly in the manufacturing, software, high-tech and pharmaceutical industries. However, significant changes to the tax regulations … Read More

California Competes Tax Credit Application periods 2014-2015

08/06/2014

According to a memorandum issued by the Governor’s Office of Business and Economic Development (GO-Biz) there is $150 million of California Competes Tax Credit (CCTC) plus any unallocated amount available from fiscal year 2013-2014. For fiscal year 2014-1015, applications for the CCTC will be accepted during the following periods: • To be determined: $45 million … Read More

The Tangible Property Repair Regulations Webinar Q&A

06/19/2014

The Repair Regulations or the Tangible Property Regulations are rules issued by the IRS with regards to the deduction and capitalization of expenditures related to tangible property. The Repair Regulations are applicable to businesses that acquire, produce, replace or improve tangible property. Application of the new Repair Regulations requires an in-depth understanding of various tax … Read More

R&D Tax Credit Now Allows ASC on Amended Returns

06/02/2014

In a surprising, and long overdue modification to the Section 41 Research & Development tax credit, Treasury announced TD 9666 allowing taxpayer’s the opportunity to use the Alternative Simplified Credit (“ASC”) calculation methodology on amended returns in cases where the credit was not previously claimed on a return. Prior to this announcement, the taxpayer’s were … Read More

Regulations TD 9666

06/02/2014

Today, the Department of Treasury announced regulations TD 9666 that allows companies to claim the R&D Alternative Simplified Credit (ASC) on amended returns. This regulation significantly increases the amount of credit a company can claim. Experts are predicting that this will encourage small and medium size businesses to act and reassess the benefits of claiming … Read More

R&D Tax Credit Update

04/08/2014

The federal tax credit for “increasing research activities” – commonly known as the R&D credit – is one of several “tax extenders” currently being discussed by lawmakers. The credit expired at the end of 2013, but the expectation is that it will be renewed, as it has done consistently since the credit was first enacted … Read More

Expire Act 2014: Tax Extenders for 2014-2015 Passed by Senate Finance Committee

04/03/2014

Yesterday, on April 3, the Senate Finance Committee overwhelmingly approved the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act of 2014 with a strong bipartisan vote, setting the stage for Congress to address. The bill extends many long awaited business tax extenders that originally expired at the end of 2013 and modifies certain tax provisions. … Read More

California Competes Tax Credit Applications Closes April 14

03/20/2014

Businesses may now apply for the first round of awards under the California Competes Tax Credit program. The last date to register for the current application window is April 14, 2014. The California Competes Tax Credit was part of Governor Brown’s three part successor program to the Enterprise Zone tax credit, which is currently being … Read More

Rev. Proc. 2014-16 – IRS releases procedural guidance to implement Final Repair Regulations

01/27/2014

The IRS recently released Revenue Procedure 2014-16, providing the procedural rules taxpayers follow to make “automatic” accounting method changes under the Final Repair Regulations. This revenue procedure modifies Rev. Proc. 2011-14 and supersedes Rev. Proc. 2012-19 regarding certain changes for amounts paid to acquire, produce, or improve tangible property. IRS PROCEDURE 2014-16 The automatic accounting … Read More

Case Study: Retirement of Building Components

01/27/2014

The Final Repair Regulations clarified the rules related to whether a building expenditure is a capital improvement or can be a repair expense. However, one of the most significant rules that has changed under these Regs is in regards to the disposition of structural components of buildings. In the past, when a taxpayer renovated an … Read More

Energy Efficient Buildings Can Pay Off with Tax Credits

12/27/2013

Federal Tax Incentives for Multi-Family DevelopersDevelopers in the multifamily industry are faced with the decision to build their projects to more energy efficient specifications or to keep them standard. The question for many has been – whether the prospective tenants will pay more in rent for a more energy efficient “green” property. Findings have indicated … Read More

New office in Bedford Texas

12/04/2013

KBKG has recently opened a new office in Bedford, Texas. Bedford is conveniently located in the heart of the DFW Metroplex. The new office in Bedford, TX is under the care of our Senior Director, Eddie Price. Eddie is a Certified Cost Segregation Professional (CCSP) and he serves on the Executive Committee of the American … Read More

R&D tax credit webinar Q&A session

11/19/2013

The R&D Tax Credit program is one of the most valuable tax credit offered by the federal government, and most state government. If your company is doing any type of R&D, you could save hundreds of thousands of dollars annually in state and federal taxes, up to 10% of your annual R&D costs. KBKG is … Read More

Repair Regulations and Retirement of Structural Components

10/15/2013

The Retirement of Structural Components and a Repair Regulations study can provide a significant tax savings. We are ready to identify and claim your missed deductions and help you conform to the new Repair Regulations. A summary of the new Repair Regulations rules and a case study from our last webinar: §Dispositions of MACRS Property … Read More

2014 Final Repair Regulations and Tangible Property Regulations.

10/08/2013

Summary of the Repair Regulations and Tangible Property Regulations by Gian Pazzia ASCSP, Shareholder of KBKG, President of ASCSP. Summary of major changes General Asset Account Election issue addressed – do not have to elect GAA treatment to forgo loss upon retirement of structural component. De minimis Rule Change – eliminated the ceiling! Amounts less … Read More

Research and Development Webinar Questions and Answers

09/17/2013

Questions Asked by Attendees from the Research and Development September 17 Webinar Q: 2 S-Corp owners develop iPhone applications. Gross receipts = $1.5 Million salary, $100 each owner, will they possibly qualify for credit? All corporate tax is passed through to them individually and they are subject to AMT. A: Great question. As you pointed … Read More

IRS issues Final Revised Tangible Property Repair Regulations

09/16/2013

On Friday (9/13/2013), the IRS issued the final, revised Tangible Property Repair Regulations for Sections 162(a) and 263(a) which modify and supersede the Temporary Regulations that were issued on December 23, 2011. While this is the fourth iteration of the Repair Regulations the IRS has released, it is the first time they have issued them … Read More

Giving Back to the Community

08/28/2013

To promote team-building, philanthropy and overall support, KBKG has planned numerous volunteer activities in the upcoming months. The events that we have achieved thus far include: donating to the Foothill Unity Center for the “Warm the Tummy, Warm the Heart” Soup Drive in February, donating clothes to the Dolores Mission Thrift Shop during our “Spring … Read More

Eddie Price, Speaker at the Growth & Profitability Summit

08/28/2013

Eddie Price, Director of Cost Segregation at KBKG, will be speaking at the Growth & Profitability Summit on “Clearing up the Confusion: The Latest on the Repair vs. Cap Regs”. His session will be held on Tuesday, October 22, from 11:40 a.m. – 12:30 p.m. To learn more about the Repair Regulations, go to: kbkg.com/repair-vs-capitalization … Read More

Answers to Questions Raised on the R&D Tax Credits Webinar

08/21/2013

Thank you for attending our RD 101: Research & Development Tax Credit Overview webinar on 8/20/13. We hope you enjoyed the course and find the information useful towards understanding the R&D Tax Credit. We encourage you to reach out to us for any additional concerns you may have regarding the material covered in class. As promised answers … Read More

Cost Segregation study medical office building Denton Texas

07/26/2013

Summary: Cost Segregation study of a recently renovated medical office building in Denton, Texas. Total improvement cost:$279,814.02. Cost Segregation Study Results: 5 year property: $173.319.74 (38.06%) 39 year property: $106.494.28 (61.94%) Building Details: The medical office building in Denton, Texas was leased and then renovated and places in service in 2012.These renovations included cabinetry, interior … Read More

45L Tax Credit study 56 units apartments Los Angeles California

07/19/2013

Summary: 56 units. Apartment complex. 12 buildings. All 56 units qualified. Results: Section 45L Tax Credits for 2011 = $112,000Details: 12 buildings, 56 units apartments located in Los Angeles, California. The apartments is a 56-unit complex comprised of 12 buildings that are each no more than 3 stories above grade. 56 dwelling units were leased … Read More

45L Tax Credit study 56 units apartments Bakersfield California

07/19/2013

Summary: 56 units. Apartment complex. All 56 units passed. Results: Section 45L Tax Credits for 2011 = $112,000Details: The apartments located in Bakersfield, California is a 56-unit residential complex comprised of 6 buildings that are each no more than 3 stories above grade. 56 dwelling units were leased to residents in 2011.The apartment property in … Read More

45L Tax Credit study 91 units apartments Panorama City California

07/18/2013

Summary: 91 units. Apartment complex Results: Section 45L Tax Credits for 2011 = $196,000.Details: The 98-unit senior apartment complex in Panorama City, California, comprised of 2 buildings that are each no more than 3 stories above grade. 98 dwelling units were leased to residents in 2011. The property is located in Climate Zone 3B as … Read More

45L Tax Credit study 81 units apartments Selma California

07/17/2013

Summary: 81 units. Apartment complex Results: Section 45L Tax Credits for 2011 = $162,000.Details: The apartment complex in Selma, California is an 81-unit residential complex comprised of 13 buildings that are each no more than 3 stories above grade. 81 dwelling units were leased to residents in 2011.The property is located in Climate Zone 3B … Read More

New Legislation Replaces California Enterprise Zones

07/11/2013

URGENT ACTION REQUIRED! 2013 will be the last tax year for which businesses may engage in qualified Enterprise Zone hiring or purchasing. Business should document as much Enterprise Zone tax credit as possible now to preserve credits for the eleven year carry forward period. » Contact us and MAXIMIZE your Enterprise Zone credits! Governor Brown … Read More

Eddie Price joins KBKG as Cost Segregation Director

06/26/2013

We are pleased to announce that we recently hired Eddie Price as the Director of our Cost Segregation department. Eddie has over 30 years of cost segregation experience dating back to the Investment Tax Credit period. He is a Certified member of the American Society of Cost Segregation Professionals and currently serving as the Secretary … Read More

Texas Governor Signs R&D Credit Legislation

06/17/2013

On June 14, 2013, Texas Governor Rick Perry signed into law HB 800 reinstating the research and development (R&D) tax credit for Texas companies. Although not permanent, both the sales tax exemption and research credit are extended through 2026 and are expected to be a boost to Texas manufacturing and high-technology industries. Details regarding the … Read More

Gian Pazzia, CCSP, of KBKG elected President of ASCSP (2013 – 2015)

06/07/2013

PASADENA, CA – KBKG congratulates Gian Pazzia, CCSP on his recent election as President of the American Society of Cost Segregation Professionals (ASCSP).“I’m looking forward to the opportunity to further develop and promote the American Society of Cost Segregation Professionals (ASCSP). With representation from Big Four all the way down to boutique cost segregation firms, … Read More

Texas Research and Development Tax Credit Legislation on Governor’s Desk

06/05/2013

On May 25, the Texas state senate approved HB 800 and sent it to Governor Rick Perry for his signature. The bill reinstates franchise tax credits for companies conducting qualified research and development (R&D) activities within the state. The Texas R&D credit was repealed in 2006, but proponents of the bill claim the tax incentives … Read More

Maryland’s Research and Development Tax Credit Extended and Annual Limits Increased

05/01/2013

On April 9, 2013, Maryland’s Governor, Martin O’Malley, approved HB 386 extending and expanding Maryland’s research and development (R&D) tax credit. Maryland’s current R&D tax credit law provides a credit against regular Maryland tax for companies incurring qualified research expenses (QREs) within the state. Maryland currently caps its R&D credits at $6 million per calendar … Read More

IRS to Create Repair vs. Capitalization Guidelines Specific to Retail Industry

03/26/2013

IRS to Create Repair vs. Capitalization Guidelines Specific to Retail Industry Recently, the IRS and the Treasury Department announced that they have accepted a request from the National Retail Federation and Retail Industry Leaders Association for guidance under the IRS’ Industry Issue Resolution (IIR) program regarding the new Repair vs. Capitalization Regulations. The purpose of … Read More

Taxpayer Negligence Penalty for Poor Cost Segregation Study

03/12/2013

Summary: In the recently released Chief Counsel Memo #20125201F, the IRS makes it clear that even if you engage a third party to perform a cost segregation analysis, taxpayers cannot avoid penalties for aggressive positions taken in the cost segregation report. The taxpayer attended a presentation that addressed open-air parking structures in which the presentation … Read More

IRS Notice 2013-14 Allows Retroactive WOTC Certification

03/11/2013

IRS Notice 2013-14 authorizes employees eligible for the Work Opportunity Tax Credit under non-VOW Act criteria to be certified by a state workforce agency through April 29, 2013 if they were hired between January 1, 2012 and March 31, 2013. The entire text of the Notice can be found here: http://www.irs.gov/pub/irs-drop/n-13-14.pdf.

Enterprise Zones to be Severely Limited

03/07/2013

As you may be aware, the California Enterprise Zone program is currently undergoing an administrative rulemaking process which will severely reduce or eliminate the tax credit for many businesses. New regulations are anticipated to go into effect in June. Businesses located in Enterprise Zones should review their tax credits to ensure all available credits under … Read More

Florida Research & Development Tax Credits are Available for 2012

01/23/2013

For tax years beginning on or after January 1, 2012, the State of Florida allows a qualified “business enterprise” to claim a state R&D credit of 10% for qualified research expenses (“QREs”) incurred in Florida (2012 Florida Statute §220.196). Is there an application process? Yes. An application process must be completed in order to be … Read More

R&D Tax Credit Receives Retroactive Two Year Extension through 2013

01/16/2013

Congress passed a two-year extension for the R&D Tax Credit as part of the Fiscal Cliff Relief bill. The “American Taxpayer Relief Act of 2012” (the Act), which the President signed into law on Jan 2, 2013, extends the credit retroactively and is now set to expire at the end of 2013. This is the … Read More

San Diego Enterprise Zone Expansion 9/4/2012

01/15/2013

On September 4, 2012, San Diego Regional Enterprise Zone was approved for an expansion. The expansion added a total of 2889 acres to existing zone that is north of Interstate 8. The SDREZ now includes Rancho Bernardo, Miramesa, Kearny Mesa, Grantville, North Bay, Delevan Drive Properties, National City, and 4 separate areas within Chula Vista. … Read More

Fiscal Cliff Bill Extends 45L Tax Credits of $2,000 Per Apartment Unit

01/02/2013

Tax Alert: Energy Efficiency Tax Credits for Multifamily Developers Extended as Part of Fiscal Cliff Agreement In an effort to avert the “Fiscal Cliff”, Congress passed the American Taxpayer Relief Act of 2012 on New Year’s Day, and President Obama has vowed to sign this into law soon. This bill extends many key business tax … Read More

IRS Publishes Formal Amendments to Repair vs. Capitalization Regulations

12/17/2012

On Friday, December 14, the IRS published the amended temporary Repair vs. Capitalization regulations to incorporate the changes announced in the recent Notice 2012-73. The changes include a two year delay of the effective date of the regulations to January 1, 2014. While Notice 2012-73 indicated that taxpayers had the option to apply the temporary … Read More

KBKG Responds to Technical Questions Raised on the R&D Tax Credits

12/12/2012

Thank you for attending our Research & Development Tax Credit Overview webinar. We hope you enjoyed the course and find the information useful towards understanding the R&D Tax Credit. We encourage you to reach out to us for any additional concerns you may have regarding the material covered in class. We hope that you will … Read More

Tracking Time Spent on R&D

12/03/2012

Dallas Business Journal Interviews The KBKG Director of R&D Tax Credits The Dallas Business Journal interviewed Bruce Stubbs, Director of R&D at KBKG Inc., in an article titled “Extra Credit for Innovation”. In the interview, Bruce recommends using a time tracking system for employees who are involved in R&D. “Anybody that touches the project, you … Read More

Pasadena EZ Received 2012 Expansion

10/23/2012

The Enterprise Zone in the City of Pasadena received a second expansion in 2012.  Taxpayer’s should re-screen Pasadena addresses to ensure all available benefits are fully realized for 2012 onward.  Apportionment computations may also be positively affected.  See the gold areas of the map below to identify new areas. Buildings at the following intersections are … Read More

IRS Changes Rules For A&E Firms: Window Closing To Claim 179D Energy Tax Deduction For Prior Years

09/20/2012

Starting September 4, 2012, designers of government-owned buildings have one less option for retroactively pursuing missed Code Section 179D energy tax deductions. The IRS recently issued Revenue Procedure 2012-39 which prohibits designers from filing a Form 3115 (Application for Change in Accounting Method) to claim missed deductions.  Previous guidance appeared to indicate that architects and … Read More

New for 2012: Los Angeles Harbor Gateway Communities Enterprise Zone

09/11/2012

The newly-designated Harbor Gateway Enterprise Zones has a 15-year life effective May 1, 2012. It includes a stretch of southern Los Angeles County from Huntington Park to San Pedro. The zone is primarily comprised of industrial areas and is located adjacent to several other Enterprise Zones in the region including the Southgate-Lynwood, Long Beach and … Read More

Temporary Regulations Create New Applications for Cost-Segregation Studies

09/10/2012

The AICPA recently released an article titled “Temporary Regulations Create New Applications for Cost-Segregation Studies”. It details: Expenses & Deductions, Building Improvements and Repairs, Building Component Dispositions and concluded that “There are a number of considerations to be made in applying the temporary regulations. In addition to dispositions and structural improvements, the temporary regulations prescribe … Read More

Update: San Jose Enterprise Zone 2012

08/31/2012

On December 31, 2006, San Jose was approved for a new Enterprise Zone designation with a 10-square mile area. This Enterprise Zone was expanded to 12-square miles on January 9, 2009. In addition to the pre-existing zone boundaries, the 2009 expansion included North San Jose, Rincon de Los Esteros, East San Jose, Edenvale and Airport … Read More

Tax Alert: Positive Outlook on Extended Tax Credits for Multifamily Developers

08/14/2012

Good news for multifamily developers! On August 2, 2012, the Senate Finance Committee overwhelmingly approved the Family and Business Tax Cut Certainty Act of 2012 with a bipartisan vote of 19-5. The bipartisan bill is a comprehensive $205 billion package that extends numerous tax cuts but reverses the trends of the past by also reducing … Read More

Is the Value of Cost Segregation Depreciating?

08/10/2012

The IRS has challenged the classification components of cost segregation studies done for major corporations such as AmeriSouth XXXII, Ltd. They are calling into question the validity of cost segregation studies and its “savings” to taxpayers. The courts have generally ruled in favor of the IRS, however, even after such rulings, many believe that the … Read More

KBKG Tax Commentary on Regulations for Repairs vs. Capitalization

07/31/2012

It has been several months since the new “Repair Regulations” were issued and many companies are still trying to figure out how this impacts their business. The IRS’s intent was to clarify the existing rules for capitalization but the overwhelming sentiment among CPAs and taxpayers is that they are too cumbersome. The IRS initiated this … Read More

California Enterprise Zone Mid-Year Update

07/26/2012

» Lookup Enterprise Zone Addresses » Enroll in Free Enterprise Zone CPE for Tax Preparers Legislative Recap Currently, the Enterprise Zones are undergoing an administrative rule-making analysis. Potential program impacts include the elimination or limitation of a taxpayer’s ability to: • Voucher eligible employees retroactively • Claim certain qualifying criteria • Participate in the program … Read More

AICPA Criticizes IRS Tangible Property Repair Regs

07/18/2012

AICPA told the IRS that its proposed regulations for the capitalization & deduction of tangible property expenditures are unnecessarily complex. AICPA sent a second comment letter to the IRS with their concerns over the new regulations. AICPA believes the IRS should provide a couple of examples to guide taxpayers on the interrelationships of some of … Read More

KBKG Responds to Technical Questions Raised on the R&D Tax Credits

06/19/2012

Does the provision for eligible small business credits to eliminate AMT in 2010 carry forward into 2011. If a credit is generated in 2011 can it fully offset AMT? The 2010 R&D generated are the only credits which can be used to offset AMT. This was a special rule for 2010 only. The 2010 credits … Read More

Joint Tax Committee Report on Revenue Proposals in 2013 Budget

06/18/2012

“Does the provision for eligible small business credits to eliminate AMT in 2010 carry forward into 2011? If a credit is generated in 2011, can it fully offset AMT? The Joint Committee on Taxation staff released a report entitled “Description of revenue provisions contained in the President’s fiscal year 2012 budget proposal.” The full report … Read More

California – Governor’s Budget May Revision 2012-2013

05/18/2012

Governor Brown released his updated budget proposal referred to as the “May Revise.” In contrast to the January and May 2011 budget proposals, the latest budget does not mention any alteration to the California Enterprise Zone program as a source of additional revenue. This is great news for businesses who are taking advantage of the … Read More

Repair Regulations

05/18/2012

The “Repair Regulations,” are applicable to businesses in all industries that acquire, produce, replace, or improve tangible property. Since these rules mostly affect real property, they can provide significant benefits to your clients even if cost segregation studies have already been performed. Further, the rules allow taxpayers to go back to previous years and take … Read More

Chairman Boustany Suspects GSA of abusing the 179D Tax Deduction

05/10/2012

Facts: On May 3, 2012, Charles Boustany, Jr., Chairman of the House Committee on Ways and Means Subcommittee on Oversight, raised question as to whether the General Services Administration (GSA) is abusing the 179D Tax Deduction. Recent documentation insinuates that the GSA may be improperly requiring contractors to provide kickbacks in order to allocate 179D … Read More

New Webinars

05/09/2012

KBKG is now offering five new webinars. Earn your free CPE without leaving your home or office. Please visit our Webinar section for more details. KBKG.com/webinars/catalog

GSA Asked for Tax Break ‘Kickback’

05/04/2012

Accounting Today published an article today entitled “GSA Asked for Tax Break ‘Kickback’”. “The General Services Administration is now coming under scrutiny for offering government contractors a tax deduction in exchange for giving the agency 19 percent of the money from the tax break. The agency is already under fire for the spending at a … Read More

Side Effects of Cost Segregation

04/11/2012

The Journal of Accountancy recently published an article titled “Side effects of cost segregation.” “Increased current cash flows and net-present-value savings from accelerated tax depreciation resulting from cost-segregation studies have been discussed in the JofA and other professional literature. But the initial cost-segregation decision can determine later tax side effects, both positive and negative. This … Read More

Revenue Procedures 2012-19 and 2012-20

03/30/2012

On March 7, 2012, the Internal Revenue Service (IRS) released two Revenue Procedures 2012-19 and 2012-20 as guidance for taxpayers to make changes to accounting methods in regards to the temporary regulations, “Repair Regulations,” which were released on December 23 of 2011. These two revenue procedures are effective for taxable years beginning on or after … Read More

ASCSP Board Member Comments on Recent Regulations

03/30/2012

Gian P. Pazzia, CCSP and Principal at KBKG, Inc. works collectively with the American Society of Cost Segregation Professionals (ASCSP) to provide insights on current tax issues including ASCSP’s comments to the IRS on the Repair v. Capitalization Temp. Regs., ASCSP’s industry commentary on PECO Foods v. Commissioner and also ASCSP’s comments on the AmeriSouth … Read More

IRS issues Large Business & Industry (LB&I) Directive Affecting Repair vs. Capitalization

03/23/2012

On March 16, 2012 the Internal Revenue Service (IRS) issued a Large Business & Industry (LB&I) Directive for taxpayers directly relating to the temporary regulations “Repair Regulations”. The IRS states that “This directive applies to the exam activity relating to positions taken on original returns relating to the following issues.” 1. Whether costs incurred to maintain, … Read More

2012 OSCPA Real Estate Conference

03/20/2012

Gian Pazzia, CCSP, Principal has been invited to speak at the 2012 OSCPA Real Estate Conference. He’ll be giving and update on “Depreciation Updates & Temporary Regulations for Repairs vs. Capitalization.” To attend the conference, please go to orcpa.org » Learn more about cost segregation and repair & maintenance.

Tax Alert: IRS takes a stand on Cost Segregation for Apartment Buildings

03/15/2012

Summary:In the recently released AmeriSouth XXXII., Tax Court Memo 2012-67, the IRS makes its first meaningful strike in its attempt to marginalize the benefits of cost segregation studies for residential rental property. For many taxpayers and CPAs, this is a complete surprise. However, KBKG clients have been warned for over a year that this was likely … Read More

Cost Segregation Studies: Best Practices – Seminar

03/06/2012

Gian Pazzia will be speaking in an upcoming Strafford live phone/web seminar entitled “Cost Segregation Studies: Best Practices” scheduled for Thursday, April 5, 1:00pm-2:50pm EDT. Because of your affiliation with KBKG, you are eligible to attend this seminar at 50% off. A thorough cost segregation study can materially reduce federal income taxes (by segregating personal … Read More

Proposed 179D Tax Credit for 2013

02/20/2012

  President Obama released his FY 2013 federal budget proposal to Congress on February 13, 2012, which is anticipated to reduce the overall economic deficit and contribute to the long-term growth of the economy. Within the framework of the proposal, Obama is suggesting a modification to the existing energy efficient commercial building deduction (Section 179D … Read More

Take Advantage of the R&D Tax Credit

02/07/2012

With tax season rapidly approaching, now is the perfect time to evaluate the potential savings that the R&D Credit can provide before filing your 2011 tax return. The R&D credit allows companies to receive tax credits for activities that incur expenses intended to develop new, improved and more reliable products, processes and formulas. The federal … Read More

45L Tax Credit

02/03/2012

About the §45L Tax Credit The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extended the Energy Efficient Home Credit which offers a 45L tax credit of $2,000 per dwelling unit to developers of 45L energy efficient residential buildings completed after August 8, 2005. Eligible Apartment Buildings, Condos, & Single Family Home … Read More

Release of the new Temp Regs. Under 263(a)

01/30/2012

The biggest news that came out over the last month was the long awaited Temporary Regs under 263(a). This clarified the rules related to whether a building expenditure is a capital improvement or can be a repair expense. However, one of the most significant rules that has changed under these Regs is in regards to … Read More

Tax Planning Matrix & Leasehold Improvement Tax Chart

01/25/2012

Many tax professionals use our Tax Planning Matrix to help quickly identify and qualify which clients can benefit from several value added services. Additionally, please find our most current Qualified Improvements – Depreciation Quick Reference Chart is a must have for anyone that deals with real estate. If you have any questions regarding any of … Read More

Cost Segregation Oregon News

11/17/2011

Forbes.com recently wrote an article entitled “Oregon Cost Segregation Decision Could Vindicate Consultants”. It details a decision by the Oregon Tax Court over a Cost Segregation Study. You can read the full article at: http://www.forbes.com/sites/peterjreilly/2011/11/15/oregon-cost-segregation-decision-could-vindicate-consultants/

WOTC expansion proposed by President Obama

08/05/2011

President Obama is commited to help military veterans enter civilian jobs. His proposal to expand WOTC includes: “The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities. Maintain the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800). A new credit … Read More

Research & Development Tax Credit Finally Permanent? Not yet but maybe soon!

07/26/2011

Many in industry certainly wish this would become a reality and feel it’s long overdue. The Research & Development (R&D) Tax Credit (“Credit”) has been extended 14 times since first enacted in 1981. Historically the Credit has been temporary in nature and when extended it has generally been extended for two year periods, often retroactively. … Read More

Congratulations, Marcus Weaver, SCSP; ASCSP Treasurer

07/05/2011

KBKG congratulates Marcus Weaver, SCSP for being elected to serve as the Treasurer in the American Society of Cost Segregation Professionals (ASCSP) Board of Directors, Executive Committee for the 2011-2012 year. In addition Gian Pazzia, CCSP has also served on ASCSP’s Board of Directors since 2007, and is the current Chair of the Technical Standards … Read More

Expending Energy

06/14/2011

Once identified, tax breaks and utility rebates offer apartment operators decent incentives to engage in energy-efficiency projects. Adelaide Grady can point to one of the best green investments multifamily money can buy: For $6.35 at any big box retailer, you can get a tube of acrylic latex caulk and a caulk gun that can immediately … Read More

Obama’s Plan to Win the Future….

05/27/2011

The White House / Office of Media AffairsPresident Obama’s Plan to Win the Future by Making American Businesses More Energy Efficient through the “Better Buildings Initiative”In his State of the Union, President Obama laid out his vision for winning the future by investing in innovative clean energy technologies and doubling the share of electricity from … Read More

Tax Relief Act (H.R. 4853) Overview

01/10/2011

Summary of H.R. 4853 Benefits 100% Bonus Depreciation & Extension of 50% Bonus– Temporary 100% bonus depreciation deduction for qualifying property placed in service between 9/9/10 and 12/31/11. 50% Bonus Depreciation provisions have also been extended through the end of 2012 (2013 for certain property).   15-Year Life for Qualified Real Property – 2-year extension … Read More

Alternative & Renewable Energy Tax News Alert

12/10/2010

Senate begins consideration of tax “extenders” package including one-year extension of Treasury grant programOn Thursday evening, the Senate began consideration of a bill (H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010), that includes two-year extensions of Bush-era tax cuts for all taxpayers, changes to the estate tax, and a … Read More

Capitalization vs. Repairs – Audit Techniques Guide

11/30/2010

The IRS recently released its Audit Techniques Guide related to issue of Capitalization vs. Repairs. This issue has received a significant amount of attention by the IRS over the last couple of years as many taxpayers have filed for Changes in Accounting Method to take advantage of missed deductions. Because the amount of deductions can … Read More

Green Buildings Are Green in More Ways Than One

11/22/2010

The trend toward energy efficient building construction is saving on not only energy costs, but also on taxes for building owners and developers.Gian Pazzia, a shareholder in tax credit specialist KBKG Inc., told an audience at the Accounting Today Growth & Profitability Summit in Orlando last week about the expanding array of tax incentives available … Read More

New IRS Developments on Statistical Sampling for Cost Segregation & Repair and Maintenance

10/21/2010

If you own or operate multiple “chain” type properties such as restaurants, retail stores, hotels, supermarkets, or service centers, the most cost effective way to take advantage of many available tax incentives involves using statistical sampling.Some popular applications of statistical sampling occur with Cost Segregation, Repair & Maintenance Tax Studies, Research & Development Credits, and … Read More

State, Local and Federal Incentives for Green Buildings

07/19/2010

The wide array of tax and financial incentives for eco-minded construction and improvements have developers, architects and designers seeing green. Federal, state and local governments have created and extended over 2,000 financial incentive programs to reward energy efficiency and the use of alternative energy in the design, construction, and improvement of buildings and homes. To … Read More

KBKG featured in WashingtonCPA’s Green Issue

07/13/2010

KBKG was recently featured in the July/August issue of the WashingtonCPA magazine. + Download the article This article focuses on the fact that the federal tax incentives for “going green” have grown steadily over the past five years, yet many businesses fail to pursue them, leaving many tax credits and deductions on the table. Please … Read More

Summary of the Small Business Jobs Act

06/30/2010

Provisions to Provide Access to Capital 100% Exclusion of Small Business Capital Gains Generally, non-corporate taxpayers may exclude 50 percent of the gain from the sale of certain small business stock acquired at original issue and held for more than five years. For stock acquired after February 17, 2009 and before January 1, 2011, the … Read More

New free CPE course – RM 101: Repair & Maintenance Tax Analysis

05/21/2010

This summer, KBKG will be teaming up with Allea Newbold, Managing Director at True Partners Consulting, to present a course on the recent developments related to repair & maintenance expenses. This course will cover the fundamentals of a repair & maintenance analysis and will provide an update of the most current information, including recent developments, … Read More

Tax Incentives Available for Green Building Construction

03/31/2010

Several lucrative federal tax incentives have been extended and enhanced for energy efficient design, construction, and improvement of buildings and homes. Companies that developed properties without necessarily trying to “go green” are often pleasantly surprised to discover that they qualify for these credits and deductions. The types of taxpayers that are likely to benefit from … Read More

Tax Incentives for Green Building Construction

02/26/2010

Several lucrative federal tax incentives have been extended and enhanced for energy efficient design, construction, and improvement of buildings and homes. Companies that developed properties without necessarily trying to “go green” are often pleasantly surprised to discover that they qualify for these credits and deductions. The types of taxpayers that are likely to benefit from … Read More

Green Incentives: Rewarding the Environment—and Your Bottom Line

11/11/2009

The federal tax incentives for going green have grown steadily over the past five years, yet many businesses fail to pursue them, leaving many tax credits and deductions on the table. The Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Tax Act of 2009 introduced and renewed numerous energy tax breaks … Read More

KBKG is on Twitter!

09/03/2009

KBKG is now on Twitter! Follow KBKG to receive our daily recommended reading articles, keeping you up to date on various happenings in the tax incentives world, while also staying up to date on what we’re up to. Follow us now: twitter.com/KBKG

Depreciation Quick Reference

08/08/2009

There have been many changes to depreciation laws in the last year that have created some confusion regarding the qualification rules, recovery periods, and the applicability of bonus depreciation. For that reason, KBKG has created a reference table (below) to use as a guide when dealing with real property improvements. If you would like to … Read More

Research and Development Tax Credit Process [Infographic]

04/16/2009

The Research and Development Tax Credit can be applied to qualified research expenses such as wages, supplies, and contract research for businesses in a wide variety of industries . KBKG’s R&D Tax Credit team follows a 5-step process in order to accurately qualify, calculate, and document research studies. In this infographic, we broke down the … Read More

KBKG Tax Insight: Affordable Housing Developers & Investors Can Now Reap an Additional $2,000 Tax Credit for Each Unit Leased in 2017

03/08/2008

Affordable housing developers benefit from various tax credits from Low-Income Housing Tax Credits to Rehab Credits, yet they often fail to claim a tax credit that is geared towards their developments: the Section 45L Tax Credit. Section 45L is a commonly overlooked section of the tax code that was recently renewed and rewards energy efficient … Read More

Cost Segregation: A Closer Look at an Emerging Tax Planning Trend

11/20/2007

Taxpayers and their advisers constantly are looking for ways to legally reduce their taxes by implementing planning solutions that will help them to shelter income against tax. In recent years, cost segregation has emerged as a popular method for reducing taxable income for taxpayers with real estate investments or commercial entities with leasehold improvements. Cost … Read More

Release the Cash in Your Property by Applying Cost-Segregation Techniques

09/26/2005

Author: Annette Bajek | Publication: East Bay Business Times If your clients own commercial or residential rental property and dutifully deduct 1/39th or 1/27.5th of its value each year, they are leaving money on the table. The 39-year figure represents the depreciable life of a commercial building while 27.5 years represents the depreciable life of … Read More

Another Cost Segregation Article

07/07/2005

Author: Luis A. Guerrero, CPA, MBT | Publication: CPA/Law Forum Newsletter Another Cost Segregation article you ask? By now you have probably read a dozen articles on the benefits of a Cost Segregation study. You are wondering whether or not it is worth your time to be reminded of these benefits when you are really … Read More

Cost Segregation: The Secret is Out

06/10/2005

Author: Gian Pazzia | Publication: CPA Leadership Report To access this article from its original publication please visit www.cpaleadership.comIf you are a CPA and haven’t heard the term “Cost Segregation” yet, you will undoubtedly hear more about it going forward. Since the IRS released it’s one hundred and twenty page Cost Segregation Audit Techniques Guide … Read More

Maximizing Cash Flow with Cost Segregation Studies

06/06/2005

$538,344 – That’s the 250% increase in tax deductions over the first 5 years of ownership for a real estate investor who had a cost segregation study performed on his recently acquired 30,000-square-foot strip mall. Large real estate developers and Fortune 500 companies have been using cost segregation studies over the past two decades to … Read More

Increased Savings for Gas Stations with Convenience Stores

06/01/2005

Commercial buildings are usually depreciated on a straight-line basis over 39 years. Rev. Proc. 87-56 enabled taxpayers to depreciate the Section 1250 real property (structure) of a gas station using the 150% declining balance method over 15 years. However, many taxpayers are unaware of another rule affecting convenience stores associated with many gas stations. In … Read More

Uncovering Tax Savings in Construction Projects

05/24/2004

Everyone is interested in saving on taxes. Not everyone knows how. Many commercial property owners and tenants and residential income property owners who are constructing improvements are unaware of the substantial tax savings available to them through some of the recent and temporary legislation that has been passed in an effort to stimulate the nation’s … Read More

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07/26/2003

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