Cost Segregation Tax Strategies

Author: Gian Pazzia

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

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 and  disposition regulations
  • Identify Cost Segregation Estate Planning Strategies
  • Identify new opportunities to immediately deduct abandoned building components, avoid  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

Registration Options
Quantity
Fees
Regular Fee $59.00

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