Archive for January, 2010

More Cost Segregation

January 19, 2010

This is a very, very important subject for building owners, so I am revisiting it.

In the past most owners of investment real estate have had no decisions to make when depreciating real property for their IRS Tax returns; it was either 27.5 years for residential rental real estate or 39 years for non-residential real estate.

In the distant past, ignoring the fact that the depreciation schedule was much shorter, there was another decision; accelerated or straight-line depreciation.

With accelerated depreciation you could either take 125% accelerated for residential or 150% for non-residential. The decision was made based on other factors in calculating your current and/or future income tax liability. Straight-line was best for some and accelerated was best for others.

There is now another big decision to be made, known as Cost Segregation. It will take some dollars in investment on your part but the ROI can be major.

I will spend a number of weeks on this subject because it can 1) create a lot of money for you and 2) be retroactive to January 1, 1987! (That was not a typo).

Come back in future weeks and tell your friends to do the same.

To see the commercial, land and investment listings that came into my desktop this week, go here:

January 19, 2010


What is going on?

January 6, 2010

In the last two weeks I have had more inquiries on vacant land than I had in the previous six months.

I have been in the real estate business since 1967 and made an interesting observation in that time. When we are about to come out of a recession an early indicator is vacant land sales. People, be they individuals, developers or builders, start looking at vacant land when they have a confident feeling that things are getting better, or about to get better. In fact, I once brought this to the attention of Crain’s Detroit Business, a weekly publication, and they ran an article about it, beginning with “Who needs Alan Greenspan when we have Gary Lillie?”

I hope I’m right once again. We will soon know.

Back from holiday break – glad to be back

January 6, 2010

2010 will be a great year!