Simple Study Provides Long Term Tax Savings and Benefits for Property Owners
San Diego, CA (PRWeb) December 15, 2006 -- With tax season around the corner, commercial building owners and CPAs with commercial real estate clients still have enough time to take advantage of a cost segregation study. Doing so can potentially save them 10-15% of building costs within the first 5 years of ownership by reducing the company's current taxable income.
Cost segregation is an IRS-approved method of reclassifying components and improvements of a commercial building from real to personal property. This allows the assets to be depreciated on a 5, 7 or 15 year schedule instead of the traditional 27.5 or 39 year depreciation schedule of real property. All commercial buildings and tenant improvements in service after January 1986 are eligible for cost segregation savings.
"Cost segregation is one of the IRS's cash-flow secrets that commercial building owners and those with significant tenant improvement should be utilizing to realize tax savings. A recent announcement by International House of Pancakes on their third quarter earnings states how the company saw $8.5 million more in cash flow this year compared to 2005, primarily as a result of a cost segregation study. Unfortunately, most companies and CPAs remain unaware of the benefits of this underutilized tax-planning tool," said Thomas Nelson of Cost Segregation Services Inc. in San Diego.
In 1997, the US Tax Court ruled that the practice of segregating building costs for tax purposes was allowed. In 1999, the IRS issued a Legal Memorandum, which stated that reclassification of assets into shorter lives would not be contested by the IRS (ILM 199921045.TNT 104-65 April 1, 1999). The Memorandum advises IRS field agents to confirm that the classifications are based on a detailed cost segregation study performed by qualified experts with appropriate technical skills. In 2004, the IRS reaffirmed the use of cost segregation when they issued the Cost Segregation Audit Techniques Guide to assist their examiners in reviewing such studies.
For more information about cost segregation studies, call 619-294-8822.
About Cost Segregation Services Inc:
Cost Segregation Services Inc. performs engineered cost segregation studies as an essential tax saving tool for commercial property owners with property valued at $1 million or greater. The company was founded by industrial engineer/economist Jim Shreve, who designed the study based upon the Cost Segregation Audit Technique Guidelines written by the IRS.
Press Contact:
Kristina Velarde
Runaway Brandit Inc.
(619) 325-0235 x305
http://www.runawaybrandit.com
Company Contact:
Thomas Nelson
619-294-8822
# # #
Related Articles:
Property Taxes Relief- Free Significant Roadmap On Taxes
I am sure your quest for property taxes relief has come to an end as you read this article. Yes, gone are those days when we have to search endlessly for property taxes relief information or other such information like ESI income tax relief, capital gains income, salary tax or even Pennsylvania property tax relief. Even without articles such as this, with the Internet all you have to do is log on and use any of the search engines to find the property taxes relief information you need.
Property Investing Secrets 8
Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy friend, Roger, does property investing and is a licensed real estate agent. Recently he looked at a property in another state that was probably worth $225,000.
Property Market Collapse Will Impact On Low Emission Building Initiatives, According To New Report
A report published this week by CarbonFree sees sub-prime mortgage woes forcing a shift away from new-build based low emission installations and towards renovations-based projects that include a significant amount of retrofitted energy saving technology.
Intellectual Property – Trade Marks – Distinctive Character Test – Landmark Decision
The recent decision by the European Court of Justice ("ECJ") in Societé des Produits Nestlé SA v Mars UK Ltd [2005], makes it easier for trade mark owners to satisfy the distinctive character test when applying for registration of their trade marks. The ECJ decided that the necessary distinctive character required for a trade mark registration can be acquired as a consequence of its use as part of another registered trade mark provided that an average, well-informed consumer would deem it to be distinctive of its trade origin.
Interest Rises In Moraira Property
Are you looking for a place where you can enjoy nature at its best but without the trouble brought by not-so-updated world In that case obtaining Moraira property is a sensible means to take
AlluraDirect.com Launches 3 Innovative Upgrades To Their Vacation Rentals Search Engine
Further refining their industry-leading vacation rentals search engine, AlluraDirect.com launches new features: faster search results, embedded property photos, and an intuitive breakdown of property information to better enable guests to find their desired accommodation, quickly and easily.
Easy Steps to buying a French Property at a discount
The first months of 2008 have been very slow for French property sales. Immobilier (French real estate agents) have reported low enquiry rates and few viewings. However, since Easter the French Property Market has shown some positive signs with more enquiries and viewings.
Hawaii Vacation Rentals Offer You A Slice Of Paradise
Have you had enough of the long, tiring hours at work? Would you like to kick back and take it easy? Do you want to leave the rat race of hectic and monotonous city life behind? Would you like to delight the entire family by taking them somewhere exotic for vacation?
4 Steps To Find The Best Vacation Rentals
Finding the best vacation rentals is all about knowing what you want, being willing to put in the search time, tapping your resources and booking early Keep reading for some tips and hints that will show you how to find the best vacation rentals for your next vacation away from home
Yew Git Off My Property! The Law Of Trespassing
CYA Disclaimer: The following is intended for reference purposes only and not as legal advice.