Tag: Tax Deductions

Tax Deductibility of PPP Loans Restores Full Value of R&D Tax Credits

Before Congress clarified the deductibility of forgivable loans under the Paycheck Protection Program (PPP) in December, the ability of PPP loan recipients to also qualify for Research and Development Tax Credits (R&D) was in question. The R&D tax credit, which is a permanent federal tax incentive meant to stimulate innovation, technical design and manufacturing, allows businesses to save

Read More »

3 Top Tax Deductions for Real Estate Investors

The past year has seen a flurry of legislative and regulatory measures intended to assist businesses and individuals with COVID-19 challenges. Given the volume of ensuing guidance from the IRS and Treasury, business owners and investors are sorting through the best tax strategies to employ for 2020 and 2021. The enactment of the Coronavirus Aid,

Read More »

Cost Segregation Study Provides For Immediate Expense Of Leasehold Improvements

Landlords and tenants often negotiate to make improvements or alterations to nonresidential rental space so that it becomes more suitable for the prospective tenant’s business needs. In doing so, the landlord or the tenant may be eligible to depreciate the costs associated with these leasehold improvements. Usually, the party that pays for and retains ownership

Read More »

5 Deductions and Credits to Reduce Your Taxes Under TCJA

Did you know that you could have more money in your pocket right now? That’s right. Because when it comes to taxes, tax credits and deductions have a huge impact under the Tax Cuts and Jobs Act (TCJA). They can reduce or offset the taxes that you owe. 5 DEDUCTIONS AND CREDITS TO REDUCE YOUR

Read More »

Accelerate Deductions Now to Maximize the Benefits

We all have seen the Tax Reform Bill blueprint go through some significant changes over the past year. “It has been a rollercoaster of a ride since the President of the United States took office,” said Julio Gonzalez, CEO of Engineered Tax Services. When the first Tax Reform blueprint was released, I remember thinking there

Read More »

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

Read More »

The Future of 179D and 45L Energy Tax Incentives

THE FUTURE OF 179D AND 45L ENERGY TAX INCENTIVES Regarding requests for updates on the status of 179D and 45L extensions, unfortunately the answer is still nothing yet! But here is what we do know: The History The 179D Energy Policy Act was enacted in late 2005 and has expired and been revived numerous times

Read More »

Uncover Hidden Value in Residential Properties Through Cost Segregation & the 45L Tax Credit

A cost segregation engineering review of building components and site improvements was performed on residential buildings, approx. 140,201 sq. ft., in Washington. The resulting benefit included a combined 39.37% reclassification of 27.5-year depreciation class life assets into 5 and 15-year class lives resulting in an accelerated benefit of $4,640,036 in reclassified assets. Upon further inspection,

Read More »

Latest News Surrounding Accounting Method Changes, Safe Harbor, Depreciation, and Research Tax Credit

Change to Accounting Methods to Comply with the New Tangible Property Regulations The IRS recently issued two revenue procedures that primarily compile the rules for requesting consent to change accounting methods for depreciation to comply with the new tangible property regulations. The revenue procedures were nearly a combined 900 pages long. The timing for issuing

Read More »