With the 2024 tax year wrapping up, it’s important to understand bonus depreciation for 2024 and cost segregation and how they can impact your taxes. Some tax benefits will prove beneficial for businesses when filing 2024 taxes. What is Bonus Depreciation? The term bonus depreciation focuses on first-year depreciation, where a business can deduct a […]
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Understanding the Challenge A common ownership structure for commercial buildings involves separating the business operations from the real estate ownership. This structure, while often beneficial for liability reasons, can present challenges when it comes to tax implications. The primary issue arises from the passive loss rules, which limit the ability to offset passive losses (like […]
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Understanding Recapture Recapture is a tax implication that arises when a depreciated asset is sold. It essentially involves paying taxes on the depreciation that was previously deducted. While cost segregation studies can significantly increase depreciation deductions, it’s crucial to understand how they may affect recapture. The Impact of Cost Segregation on Recapture A cost segregation […]
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Many residential rental property owners are discovering the significant tax benefits of cost segregation studies. While traditionally associated with commercial properties, these studies can provide substantial tax savings for residential rental and short-term vacation properties as well. Let’s explore how cost segregation can work for your rental property investment. What Types of Residential Rental Properties […]
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