Archive for the ‘real estate’ Category

Are you looking to learn a little more about Cost Segregation, click on this link to view a brief video.

Total Tax Deduction of $5,771,823, in Total Identified Expenses, to be applied in Federal Income Taxes by this owner of Nursing Homes in Texas, who implemented our comprehensive Repairs and Maintenance Services to benefit from the results.

“Engineered Tax Services performed a detailed analysis of this landmark newbuild hotel project to determine the maximum 179D Tax Deduction available to us. Their documentation was very thorough and professional. We were very pleased with their overall process and level of service.”
Brian Kuckelman, NCARB
Senior VP – Architecture & Construction
Rida Development Corporation
Orlando, Florida

Joel Ackerman, CPA

The Energy Policy Act of 2005 (EPACT) provides substantial tax benefits. Under Section 179D of the Internal Revenue Code, owners of energy-efficient commercial buildings may take a tax deduction of up to $1.80 per square foot for qualifying construction or retrofits.

To help reduce the energy consumption and CO2 pollution from commercial properties, Congress passed The Energy Policy Act of 2005, which provides substantial tax benefits where energy efficiencies are designed within a building.

The IRS Regulations require an independent engineering study in order to substantiate and make a valid claim for these federal tax deductions. These deductions became available as of January 1, 2006 and have recently been extended through December 31, 2013.

How does entity type affect the taxable income to building owners? Read the Full Article for details about the general tax treatment of each type of entity.

By James K. Zahn, FALA, Esq.

Recently, I received a call from my accountant. She called to inquire if I have ever had one of my architect clients attempt to receive a § 179D Deduction for Energy Efficient Commercial Buildings granted under Title 26 of the US Federal Regulations (fondly known as the “IRS Tax Code”). I was unaware of this particular section of the Code until her call, as none of my clients have ever asked about it or brought it to my attention. This article will concentrate on publicly-owned commercial buildings, because that’s where the architect is really in a position to greatly benefit from this unusual regulation.

According to the US Government Printing Office, the IRS Tax Code is 13,458 pages long, and is contained in twenty volumes available for purchase at only $974, plus shipping and handling. Section 179D is a very small provision buried within a voluminous document and can easily be missed. I looked up § 179D on the internet and was astounded by what I found. This particular section of the tax code is a must read for all practicing architects and their accountants!

Read the Full Article for information every architect should know.

Federal tax law offers an incentive to taxpayers who contribute to the preservation of our nation’s old and historic buildings.

By rehabilitating directly or investing in the rehabilitation of eligible buildings, taxpayers can take advantage of one of a two tax credits.

The federal income tax credit is equal to 20% of the cost of rehabilitating historic buildings or 10% of the cost of rehabilitating non-historic buildings constructed before 1936. These credits provide a dollar-for-dollar reduction of income tax owed.

Read the Full Article for details.