property tax deduction kansas

Thursday, April 1st, 2010 at 2:14 am

Tax benefits of reducing segregation costs

Tax reduction and tax deferral are the main advantages of obtaining a review of cost segregation. Cutting taxes has been to produce more income taxed the rate of capital gains rather than ordinary income rates. Tax deferral occurs since the depreciation is taken in the very first years of ownership.

Additional benefits are not reduced taxes related to the acquisition of a study on accounting for costs of segregation are more accurate, get a book value of assets that may become useless (leasehold improvements for tenants financially unstable) and an accurate method of tracking the cost basis and depreciation for all tenants.

The tax reduction is the most important and least understood the benefits of cost segregation. Consider the following example of how cost segregation becomes taxable income to 35% for income taxed at 15%

Linda is a doctor who makes $ 350,000 per year. I bought an ambulance in January 2004 and sold it in December 2005. Their increase in the cost segregation study of the amount of amortization of $ 80,000 in 2004 and 2005. Higher Linda reduces the amortization income taxes $ 28,000 in 2004 and 2005, with a total reduction of $ 56,000 (as revenue). However, Linda capital gains revenues increase by $ 160,000 in 2005, based on two years of additional depreciation ($ 80,000 per year x 2). Additional charges capital gains will be $ 24,000 ($ 160,000 x 15% of profits earned by capital). Therefore, the net proceeds of Linda's experience a tax reduction of $ 32,000 ($ 56,000 - $ 24,000) for a period of two years. This analysis does not take into account the time value of money.

Real estate investors are generally obtain a study of the segregation of costs if the cost basis of the property is at least $ 500,000.

Cost segregation produces tax deductions and reduce taxes on income Federal across the country and in all size markets. These are just some examples of cost segregation generates significant tax deductions.

City:

Houston, TX
Hartford, CT
Miami, FL
Las Vegas, NV
Atlanta, GA
Bridgeport CT
Orlando, FL
Los Angeles, CA
Denver, CO
New Orleans, LA
Louisville, KY
Raleigh, North Carolina
El Paso, TX
Sacramento CA
Ft Lauderdale, FL
Albany, NY
Riverside, CA
Portland, OR
Buffalo, NY
Detroit, MI
Toledo, OH
Augusta, GA
Scranton, PA
Wichita, Kansas
Chicago, IL
Honolulu, HI
Lakeland, Florida
Kansas City, MO
Pittsburgh PA
Nashville, TN

Cost segregation produces tax deductions for virtually all types of property.

Property type:

Motel
Community Mall
Garage Auto Service
neighborhood shopping center
Tennis Club
In a single tenant retail
Bank
Country Club
Truck Stop
Surgery

Almost all sectors, including the following tax credits can generate profitable by costs segregation.

Industry:

Papermaking
printing operations
Truck transportation
Electronics and appliances
Fabricated metal products
Food Manufacturing
Durable good wholesalers
Distributors auto parts
Frozen Food Manufacturing
Aviation

O'Connor & Associates is a national provider of real counseling service commercial real estate, including studies of the segregation costs, reduction of tax due diligence, updated updated analysis of cost reduction Dallas federal tax, tax returns and inspections of apartments.

About the Author

Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction.

http://www.poconnor.com