A Cost Segregation Study dissects the construction cost or purchase price of real property that would normally depreciate over a long period and reallocates costs into shorter tax lives of 5, 7 or 15 years. This on-demand course will provide tax reform updates, developments in the area of cost segregation, and tax planning ideas that can save money for your clients.
Publication Date: May 2018
Designed For
Tax, accounting, and other professionals in the real estate market.
Topics Covered
- Cost Segregation Overview
- Benefit-Accelerated Depreciation Deductions
- Example-Office Building, Current Year Acquisition
- Any Type of Property May Be Eligible for a Study
- Section 1245 Personal Property
- Land Improvements
- Cost Segregation-Tax Planning Tool
- Tax Considerations
- Self Rental Rule
- Grouping Election
- Planning Opportunity-Lease Language
- Cost Segregation Deductions
- Tax Reform Updates
- Qualified Improvement Property (QIP)
- Cost Segregation Estate Planning Strategy
- Condo Tax Basis Allocation Study
- Repair vs. Capitalization
- Avoiding Cost Segregation Recapture Tax
- Additional Tax Incentives to Consider
Learning Objectives
- Explain what cost segregation is, how taxpayers benefit from it, and how it has changed over the years
- Identify tax issues that should be considered in conjunction with a cost segregation studies
- Recognize potential impact of cost segregation on estate planning as well as other tax planning ideas
- Recognize how tax reform will impact cost segregation studies
- Discuss cost segregation opportunities related to the tangible property regulations andÂ
disposition regulations
- Identify Cost Segregation Estate Planning Strategies
- Identify new opportunities to immediately deduct abandoned building components, avoidÂ
recapture tax, and expense demolition costs
- Recognize the average reallocation for office buildings
- Describe lease language and planing opportunities a lessee should utilize
- Identify types of qualified improvement property
- Identify the primary goal of cost segregation
- Describe examples of Section 1245 personal property
- Recognize asset life with respect to cost segregation
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Gian Pazzia
Gian oversees KBKG’s Cost Segregation group nationally. He is also a subject matter expert for 263(a) Repairs vs. Capitalization services. Gian is a recognized leader in the cost segregation field serving as a former President (2013-2015 term) of the American Society of Cost Segregation Professionals (www.ASCSP.org) and holding a seat on their Board of Directors for a decade. Additionally, he was chair of their Technical Standards committee from 2009-2013.
He led the ASCSP Technical Committee to publish the first set of standards that all cost segregation reports must follow in order to be stamped by a Certified Member (MQS Report Requirements Appendix MQS 2011-1 Issued October 21, 2010). He coordinated ASCSP’s remarks on numerous issues including comments to the IRS on the newly issued “Repair Regulations” (December of 2011) and was also the lead author for ASCSP’s official commentary on the AmeriSouth XXXII., vs. Commissioner case; and the Peco Foods vs. Commissioner case. As President of ASCSP, Gian has assisted the Internal Revenue Service by providing feedback on amendments to the IRS Cost Segregation Audit Techniques Guide prior to public release.
Gian was one of the first in the country to become a “Certified Cost Segregation Professional” (CCSP) and one of the few that has provided expert witness testimony on Cost Segregation issues before the IRS. Prior to joining KBKG, Gian worked at two of the Big Four accounting firms. At PwC in Chicago, he served on the National Cost Segregation Consistency Committee where he was responsible for the development of their proprietary cost segregation software. He was also recognized for initiating and developing their first in-house advanced engineering training program.
Gian has been published in various journals such as Accounting Today, BNA Bloomberg and the CPA Practice Advisor. He’s been invited to speak to thousands of CPAs through associations including the AICPA, California Society of CPAs, BNA Bloomberg, Strafford Publications, National Association of Tax Professionals, Oregon Society of CPAs, Washington Society of CPAs, Illinois Society of CPAs, Colorado Society of CPAs, Lorman Education, Denver University and more.
Gian graduated from Purdue University with BS in Civil Engineering, with an emphasis in Structural Design. He is a member of the American Society of Civil Engineers as well as a lifetime member of Chi Epsilon, a civil engineering honorary fraternity.