Tag: Q&A

Q&A: If a condominium complex is a short-term vacation rental, can I still do a cost segregation study?

Question:If I own and rent out a condominium complex as short-term vacation rentals, can I still do a cost segregation study? Answer:Yes. However, short-term rentals vs long-term rentals depreciate differently. Although a condominium is considered a residential property and typically depreciates over 27.5 years, short-term rentals typically depreciate over 39 years.Dwelling units rented for a

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T-Regs Q&A: Can you expense a remodel as a repair like you do parking lot resurfacing?

TANGIBLE PROPERTY REPAIR REGULATIONS Q&A Scenario: A client owns fast food franchises and is required to remodel the stores every 7 years. Under the previous law, we have always capitalized these expenditures and expensed the remaining capitalized costs. Details: Own/Rent: Rent Revenue: $1.5M-$2M (decreased during remodel, increase approx. 5% after) Remodel Cost: $400k Can we

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financial statement

Q&A RE: Proper Financial Statement Presentation Following a 263(a) Study

Does this change of reporting the R&M expense for tax reporting purposes, per IRS statute, require that we conform with the same presentation / treatment for financial statement reporting? Situation Background ABC Company engaged Engineered Tax Services to perform a Repairs & Maintenance Study. The R&M Study identified approximately $15K of capitalized assets from 2005

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Q&A Regarding Filing Late Elections for Dispositions

If we make an election/statement in 2013 and discover in 2015 that a retirement of an asset from 2008 should be made, is the loss taken in 2015 or would we file an amended 2013 return to claim the loss? Rev. Proc. 2012-20 is the guidance that is supposed to be updated by the IRS

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Q&A Session Regarding Cost Segregation & the Treatment of Property

A computer system used to control the heating, ventilation, and air conditioning system of an office building is classified as: A structural component of a building with a 39 year recovery period A project has an electrical panel with 42 circuit breakers, each rated at 20A/1P. Through your detailed analyzes you have identified 28 circuit

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Q&A Re: Tangible Property Regs. Small Taxpayer Safe Harbor Election

Can we confirm whether the tangible property regs’ Small Taxpayer Safe Harbor election mentions anywhere whether, for purposes of the gross receipts test, one must consider “controlled group” or attribution rules under section 318? This is a good question. (To clarify the Small Taxpayer Safe Harbor is an annual election for businesses with $10 million

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