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Cost Segregation Studies
A cost segregation study is a process of identifying personal property assets that would typically be depreciated over 39 years as part of a building and reclassifying these assets into class lives of five, seven or 15 years. Having a cost segregation study allows for accelerated depreciation expense and a reduction of taxable income.
Recent IRS procedures allow owners of commercial real estate to go back in time to "catch up" depreciation deductions that were warranted, but not taken, in previously filed tax returns. The procedure offers you the opportunity to file using this catch up amount without amending previous years' returns. The immediate correction or catch up can go back as far as 1987 and is applied to a single (current) tax year as an acceleration of depreciation expense. This means you can enjoy tax deductions right now that you'd otherwise have to wait years to receive.
A cost segregation study is recommended if you are:
- Building a new facility
- Acquiring an existing building
- Improving, renovating or expanding an existing building
- Conducting leasehold improvements on your current facility
Cost segregation studies are beneficial especially for:
- Apartment complexes
- Automobile dealerships
- Distribution centers
- Fast food restaurants
- Food processing facilities
- Hotels/motels
- Manufacturing plants
- Medical centers
- Nursing homes
- Office buildings
- Retail chains
- Shopping malls
- Sports stadiums
- Supermarkets
Links
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News
Tax Tips: A Health Care Reform Primer
What seemed to be a long way away in the spring of 2010 is
standing on the doorstep knocking in the spring of 2013. Now is the
time to address what employers should know and what they should do
in preparation for January 1, 2014, when a majority of PPACA
legislation kicks in.
Filing Taxes: Lots of Changes, Procrastination
A host of tax changes from "fiscal cliff" legislation and a
later-than-usual start to filing season could spark more taxpayers
to file their returns this year before the traditional April 15
deadline.
Positioning to Deal with Change
An interview with HORNE Tax Partner John Scott about some of the
changes that are on the horizon for business of all sizes in the
coming months and years.
Employer “Pay or Play” Penalties Under the Patient Protection & Affordable Care Act
The IRS has released proposed regulations on the employer shared
responsibility provisions, commonly referred to as the "employer
mandate." Under Code Section 4980H added by the Patient
Protection and Affordable Care Act (PPACA), certain employers are
responsible for shared responsibility payments. These
payments have become known as "pay or play" penalties. The
proposed regulations provide long awaited guidance including
definitions and numerous rules for determining applicable employer
status, full-time employee status, and assessable
payments.
The New Reality: Taxes
This interview with HORNE Tax Partner John Scott, CPA, looks at
the reality of the tax situation post-fiscal cliff resolution.
HORNE Tax Alert: Mississippi House Bill 970
HORNE LLP is keeping our eye on Mississippi House Bill 970 for
our clients doing business in Mississippi. In its current
form, Mississippi House Bill (H.B. 970) addresses three primary
areas.
HORNE Tax Alerts
View up to date tax information from HORNE's tax team
2013 Mississippi Legislative Update: Statute of Limitation Proposed Modification
HORNE LLP is monitoring Mississippi House Bill 892 (H.B.892) and
Mississippi Senate Bill 2403 (S.B 2403) currently being considered
in this Legislative session. These bills as drafted would
address Mississippi's current open ended audit practice and require
mutual agreement in writing by the Mississippi Department of
Revenue (MSDOR) and a taxpayer to extend the time period for the
examination of the returns past the normal statute of
limitation.
Events
Federal Tax Update
January 23, 2013: Jackson, MS - Tax Partner John Scott and Tax
Supervisor Blair Waggoner present to the local Association of
Government Accountants and the American Society of Women
Accountants at their joint tax and internal control update
meeting.