An Overview of Current Commercial Real Estate Depreciation Strategies

Overview

It can be challenging to ensure that your clients’ have fully leveraged their fixed assets. Cost segregation is the beginning of a comprehensive tax plan and is key to maximizing tax benefits. To maximize tax savings on commercial real estate, cost segregation can be used thoughtfully in combination with multiple other strategies. By employing incentives like bonus depreciation, expensing under Tangible Property Regulations, Section 179 expensing, and more, CPAs can ensure that their clients have fully optimized their real estate tax efficiency. This Self-Study will discuss current depreciation strategies and demonstrate how to use them in tandem. A strategic hierarchy chart and several other printable reference tools will be provided. The utility of cost segregation will be discussed.

Highlights

Understand the history of Qualified Property Categories. • Explain the implications of the CARES Act’s correction of QIP recovery period. • Understand how to incorporate retroactive CARES Act changes into past returns. • Understand the value of QIP as an indicator of Section 179-eligible property. • Explain how strategies like Section 179 Expensing, Bonus Depreciation, Tangible Property Regulations (TPRs) and Energy Incentives all contribute to a comprehensive tax strategy. • Compare and contrast Bonus and Section 179. • Strategically use various tax strategies to maximize savings.

Objectives

• Recognize the implications of the CARES’ Act’s correction of the QIP recovery period. • Identify the utility of strategies like Section 179 Expensing, Bonus Depreciation, the Tangible Property Regulations, and more. • Determine how to use tax strategies in tandem to maximize savings strategically.