Tax Deductions (Business Tax Deduction Tips)


Real estate depreciation offers substantial opportunities to increase tax rebates . Most depreciation schedules are established by simply leave land and long-life improvements. This simple procedure is allowed but significantly understate lawful depreciation. About 20-40% of improvements for most properties are short-life items. Short life can be depreciated over 5, 7 or 15 years. There are about 130 short-life items that have been determined by law, court decisions and IRS tax rulings.

Real estate depreciation can typically be increased by 50-100% for the first 5-7 years of ownership by obtaining cost segregation study. A cost segregation study precisely values ​​up to 130 components of real estate that you can observe the short-life property.

by obtaining a cost segregation study, it is possible to get a windfall of tax rebates from “catching up” previously under reported depreciation. This one-time “catch up” can occur in the first tax return filed after the cost segregation study is conducted without filing any amended tax returns.

Reviewing fixed asset listings (of business personal property) can generate a meaningful amount of tax deductions. They are often things that should have been expensed, which have been sold or thrown away or depreciation of life. Things that should have been expensed include operating costs (sometimes by error) and maintenance or repair (which was necessary but not increase the life of the assets or shares.) Section 179 allows businesses to use up to $ 108,000 2006 investments, tax deductions. Verify that you are not profiting from assets that could be claimed as a tax deduction.

Casualty losses also offer opportunity for tax deductions. Accidental loss, you can draw: 1) the market value immediately before the casualty less 2) the market value immediately after the casualty less the amount covered by insurance. The part that is not intuitive is: market value after the accident is much less than the value before plus the cost to renew. Other factors that can and should be considered for tax deductions are: lost rent / usage, stigma (in some cases), construction management, risk construction and sustainable effort

Bad debts are a subjective matter .. judgment required to accurately assess the amount that should be claimed as a tax deduction. If bad debts have not been contemplated for several years, they may offer meaningful tax deduction opportunities. (This applies to businesses that use accrual accounting. Companies that use cash accounting can not claim tax deduction for bad debt since they never recognized the revenue.)

Do well by doing good. You reduce taxes in several ways when charities. For example, you bought the land 10 years ago for $ 200,000 and it is now worth $ 1,000,000. However, you now realize that you will never use the land for its intended purpose. You can give the land to a qualified charitable organization and take a tax deduction for $ 1,000,000. However, you do not have to pay capital gains tax on the appreciation.

tax deductions sometimes seem arcane and complicated. However, knowledgeable group of advisors from several fields can reduce your federal income taxes. The complexity of the tax code makes it difficult for one personally to be knowledgeable in all areas.

Cost segregation produces deductions and reduces federal income taxes across the country and in every size market. Below are just some examples of cities where cost segregation generates meaningful deductions

City :.

  • New York, NY
  • Houston, TX
  • Hartford, CT
  • Las Vegas, NV
  • Memphis, TN
  • Philadelphia, PA
  • Orlando, FL
  • Phoenix, AZ
  • Atlanta, GA
  • Bridgeport, CT
  • Worcester, MA
  • Akron, OH
  • Harrisburg, PA
  • Salt Lake City, UT
  • St. Louis, MO
  • Portland, OR
  • Scranton, PA
  • Greenville, SC
  • Bakersfield, CA
  • Madison, WI
  • Chicago, IL
  • Fresno, CA
  • Riverside, CA
  • Albany, NY
  • Indianapolis, IN
  • Birmingham AL
  • Ft. Lauderdale, FL
  • Baton Rouge, LA
  • Augusta, GA
  • Honolulu, HI

Cost segregation produces deductions for virtually all property types, including the following:

Property Type

  • Medical facility
  • Shopping
  • Restaurant
  • Country Club
  • fast food
  • Power Center
  • Hotel
  • wash that
  • convenience store
  • Health Spa

Almost every industry, including the following, can generate cost-effective deductions using. Cost Segregation


  • Golf courses and country clubs
  • Transportation equipment manufacturing
  • Electrical component output
  • Properties less
  • Clothing production
  • Wood product manufacturing
  • Plastic and rubber products manufacturing
  • Furniture stores
  • Beverage and tobacco production
  • Building supply dealers

tax where include federal income taxes, state income taxes and property taxes. We do not prepare tax returns. Instead, our consultants review your situation and suggest cost effective option to reduce your income tax liability legally. 5. O’Connor & Associates is a national provider of commercial real estate consulting including cost segregation studies, tax cuts, feasibility studies, tax audit, control flat. O’Connor Associates services include business valuation income tax, due diligence, tax, tax reduction, property tax, feasibility studies, real estate consulting, market research, Denton Central Appraisal District, Tips and Tricks for winning Your Property taxes in Collin, Collin county food Federal tax


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