Seems like there is always more to learn. I attended a conference on Monday and learned a new accounting trick for commercial real estate. There is a procedure known a Cost Segregation which can allow you to reallocate some of the cost of the building in a way that can allow you to accelerate the depreciation.
Actually this trick has been around for a while but it is not widely known. It is the result of a decision regarding HCA from I believe 1997. The IRS then clarified the decision with a ruling in 2004 that specified what was necessary and acceptable to make these determinations. Until this time, it was only practical for very expensive real estate transactions.
Bottom line here is that this can lead to big tax savings.
If you want to know more about Cost Segregation or other Commercial Real Estate issues, give me a call. I specialize in Commercial Real Estate and handle Office, Industrial, Retail, Land and Investment properties. I work with Landlords, Tenants, Buyers, Sellers and Investors.
Have a great day!
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299
dmccoy@ccre.biz
Ofc: (502) 379-6005
Cel: (502) 905-5274
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