Tax saving opportunity!
Finding new ways to reduce tax liabilities and enhance cash flow is a top priority for every corporate manager and executive. Unfortunately, opportunities to have an impact are very rare. However, if your company has recently purchased, developed, or improved leased commercial property, you may be able to “discover” new tax saving opportunities through a cost segregation study. While the rules and regulations governing these studies are complex, our firm is able to help you leverage this opportunity.
What is a Cost Segregation Study?
A cost segregation study identifies the assets and costs of your commercial real estate or construction project and classifies them for federal tax purposes. Traditionally, most will classify assets (electrical, mechanical, and plumbing features) on a 39-year depreciable life schedule providing a consistent tax benefit. However, through a cost segregation study, these same assets are re-classified with a 5, 7, or 15-year depreciable life schedule using accelerated methods. This allows a company to depreciate assets in a new or existing structure in the shortest amount of time under current tax laws. The result is less time to realized tax savings.
Hanson & Company conducts an investigation of your project relying on a team of accounting, construction, and engineering professionals to identify and reclassify assets as permitted. Our process includes:
Review of Architectural Blueprints
Identification of Assets Qualifying for Reclassification
Creation of Detailed Asset Descriptions & Functions
Documentation of Assets Available for Reclassification
Tax compliance and planning can be a complicated process that requires the assistance of a seasoned professional. For additional information on our tax services contact us at 303-388-1010 or fill out a contact form here to learn how we can help.
In a reversal from earlier guidance, the IRS recently announced a delay in the lower $600 reporting threshold for Form 1099-K for the 2022 tax year. regulations.
On December 29th, President Biden signed the Consolidated Appropriations Act of 2023. Although primarily a spending bill that funds the federal government for the year, it did include important retirement plan reforms.
The tax year 2022 continues the recent trend of challenges and changes to the tax landscape. Most of the COVID-19-related provisions have expired.