More Cost Segregation

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


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