45L Energy Efficient Dwelling Credit // Overview

The IRS has extended the §45L $2,000 tax credit for new qualifying energy efficient dwellings through December 31, 2020. You can receive the $2,000 credit for each qualifying unit sold or leased prior to the deadline. This includes homes, apartments and independent living facilities.

CARES Act: Net Operating Loss Changes

The CARES Act amended §172(b)(1) and as a result of that amendment, taxpayers take into account such NOLs in the earliest taxable year in the carryback period, carrying forward unused amounts to each succeeding taxable year. Rev. Proc. 2020-24, §4.01(1) and this white paper provide guidance as to when and how to file the irrevocable election.

CARES Act: QIP and Immediate Renovations

The following question as been posed based on the release of the CARES Act: If a taxpayer buys a building and immediately renovates it, would the improvements qualify as Qualified Improvement Property (QIP) eligible for bonus depreciation? Read our answer in this White Paper.

CARES Act: QIP

Recently, we have received questions regarding the proper procedures for implementing a change to the depreciation treatment for QIP assets originally capitalized as nonresidential real property. Here is our reply. UPDATED 5/7/20

CARES Act: Depreciation

The CARES Act provides a technical correction to the TCJA, and specifically designates QIP as 15-year property for depreciation purposes. This makes QIP eligible for 100% bonus depreciation. This change is effective as though it had been originally included in the TCJA (for property acquired and placed in service after 9/27/17). Read the white paper for more details.

Energy Efficient Commercial Deduction // 2020

The Energy Policy Act of 2005 created (and subsequent legislation has extended) the CBD to encourage investment in energy efficient building systems. This incentive establishes a tax deduction for capitalized assets that were placed into service after December 31, 2005, and before January 1, 2021. See §179D(h) as amended by the Further Consolidated Appropriations Act, 2020.

45L Energy Efficient Home Credit // 2020

The New Energy Efficient Home Credit under Internal Revenue Code §45L was established by the Energy Policy Act of 2005 and was subsequently extended. The credit, which is only available to eligible contractors, is potentially worth up to $2,000 for each qualified new energy efficient home acquired for use as a residence from an eligible contractor after December 31, 2005, and before January 1, 2021.

Business Interest Expense Part 1

A three-part series was written about the confusing details within the 2017 TCJA Provision about Business Interest Expenses. This is the first paper on the subject discussing the limitations of deductions.

QIP Update Due to §168

Recently there has been some confusion about QIP recovery periods due to the amendments to §168. The Committee Comments for the Tax Cuts & Jobs Act discussed altering the recovery period. However, actual changes did not make it into the final bill. This white paper summarizes all the details.

Defining Real and Personal Property

In a recent article in Accounting Today, “The cost seg/1031 exchange combo is even more important under tax reform” the author discussed his views on the interplay between a cost segregation study and §1031 as amended by the TCJA. Our viewpoint on the subject differs from what is claimed in the article. Read this white paper to understand our thoughts. 

Estate Planning

When a Cost Segregation study is used as an estate planning tool, it can result in the recognition of depreciation deductions for the decedent that would have otherwise gone unused; in effect, creating depreciation deductions. Read this white paper to understand how.

1250 and 1245 Property under §1031

The Tax Cuts & Jobs Act §13303(c) specifies that the amendments made to §1031 apply to any exchange completed after 12/31/17 unless the property that is disposed of or received by the taxpayer in the exchange is disposed of or received on or before 12/31/17. 

A 1031 Property Exchange

Recently, the Tax Cuts & Jobs Act altered the qualifying property types for §1031 exchanges stating personal property no longer qualifies for gain deferral under §1031. But how do you determine if property is real or personal?  Read this white paper to understand our view. 

Non-Depreciable to Depreciable

The Rev Proc can be confusing. A client recently asks: Is the change from treating an asset as non-depreciable to depreciable considered an automatic change? This white paper answers that question. 

Cost Segregation and Roof Replacement

What may seem like an easy question, could take a lot of research
to get the right answer. A client recently inquired about the depreciation on a partially replaced roof. The answer looks simple, but there were many tax laws to consider – just take a look at this white paper to understand. 

2018 Tax Laws For 2017 Property

The new tax laws are out and with them come important changes. While not all aspects affect cost segregation, some will have a substantial impact. This white paper focuses on the changes effecting 2017 property.

Acquiring Buildings at Different Times

If a partnership owns three buildings acquired at different dates, Can you perform a cost segregation study for a single property without touching the other two? The simple answer is YES. But there are things to consider. Read this white paper to find out more. 

Section 179 and Cost Segregation

The beginning of the investment limitation phaseout range increased from $2,000,000 to $2,500,000 and the maximum deductible amount increased from $500,000 to $1,000,000. This white paper contains more details about the changes. 

Service Building Depreciation

In this white paper, we answer the question: Would NEW CONSTRUCTION ON AUTOMOTIVE DEALERSHIP BUILDINGS be classed with a 15 year based on BDOK or 39 year based on Revenue Procedures 87-56? And what are your thoughts and what are the parameters for claiming a “Service Building” with a 15 year life with Bonus Depreciation?

Download Our Latest Brochure