Author: Aj Lyons

Form 4562, Depreciation and Amortization

Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are...

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Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are...

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[vc_row][vc_column width="1/2"][vc_single_image image="6891" img_size="full"][/vc_column][vc_column width="1/2"][vc_empty_space height="42px"][vc_column_text] Unlocking Value with Affordable Cost Segregation Studies for Commercial Buildings [/vc_column_text][vc_empty_space height="42px"][vc_column_text] In the realm of commercial real estate investing, tax strategy plays an integral role in determining a property's profitability. One of the most effective yet often overlooked tools in this context is cost segregation. More specifically, affordable cost segregation studies for commercial buildings can significantly enhance cash flow by accelerating...

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What is a Cost Segregation Study?

[vc_row][vc_column width="1/2"][vc_single_image image="6872" img_size="full"][/vc_column][vc_column width="1/2"][vc_empty_space height="42px"][vc_empty_space height="42px"][vc_column_text] What is a Cost Segregation Study? [/vc_column_text][vc_empty_space height="42px"][vc_column_text] Owning or developing commercial real estate comes with its fair share of complexities. Among these, a cost segregation study stands out as a potent tool that many property owners overlook. This powerful strategy can significantly maximize depreciation deductions and lessen the tax burden for commercial property owners. Why is it so often overlooked? The...

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can you do a cost segregation study yourself

[vc_row][vc_column width="1/2"][vc_single_image image="6844" img_size="full"][/vc_column][vc_column width="1/2"][vc_empty_space height="42px"][vc_empty_space height="42px"][vc_column_text] Can you do a Cost Segregation Study yourself? [/vc_column_text][vc_empty_space height="42px"][vc_column_text] If you're a property owner wondering, "Can I do my own cost segregation study?" the answer is yes! Many investors are turning to DIY methods for cost segregation to save on the significant costs associated with hiring a professional - which can range from $15,000 to $25,000. Cost segregation is a...

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How Does Cost Segregation Improve ROI?

Real estate investment has long been considered a reliable and profitable business. However, property owners and investors are constantly looking for ways to maximize their returns and minimize their tax burden. One often overlooked, yet powerful strategy is cost segregation. In this blog post, we will discuss how cost segregation can improve your real estate investment ROI and why you should consider implementing it in...

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Adjusted Basis To figure your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service for business or the production of income. The result of these adjustments to the basis is the adjusted basis. Increases to basis.  You must increase...

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Basis of Depreciable Property The basis of property used in a rental activity is generally its adjusted basis when you place it in service in that activity. This is its cost or other basis when you acquired it, adjusted for certain items occurring before you place it in service in the rental activity. If you depreciate your property under MACRS, you may also have to reduce your...

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Disclaimer: We are not accountants, lawyers, or financial advisors, so please consult your own team of professionals about the topics covered in this article. Real estate investing offers numerous tax advantages, but not all investors are taking full advantage of these benefits. In this article, we'll explore the concepts of cost segregation and bonus depreciation, two powerful tax strategies that can significantly accelerate depreciation and maximize...

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