Introduction
Cost segregation is a powerful and underutilized strategy for property owners looking to optimize their tax positions. While many assume it only applies to newly acquired assets, it's truly far more flexible and lucrative for properties in any lifecycle stage.
Picture a tax reform that redefines financial planning for businesses and families, championing Main Street, scaling back clean energy incentives, and cracking down on fraud. That’s the "One, Big, Beautiful Bill," unveiled by the House Committee on Ways and Means in May 2025. For business owners and tax professionals, this legislation is a golden opportunity wrapped in new compliance challenges. Here’s the concise narrative of its impact.
As the United States continues to reshape its trade policies through current and proposed tariffs, businesses across industries are grappling with the ripple effects on their financial strategies. Tariffs, which act as taxes on imported goods, have far-reaching implications beyond trade, influencing tax planning, cost segregation, and research and development (R&D) credits. This blog post explores how these tariffs might affect the tax strategy business, with a particular focus on cost segregation and R&D credits, and offers insights for businesses navigating this evolving landscape.
Tax season: the time of year when CPAs turn into sleep-deprived wizards and taxpayers divide into two camps—the April 15th filers and the Extension Elite. Let’s dive into this epic clash with some accounting humor, a sprinkle of depreciation-related snark, and a nod to those poor souls stuck waiting on K-1s through no fault of their own.
Many cost segregation providers offer to produce a Form 3115 (required for catch-up studies) for their clients. I’m not a fan of this approach. I’ve been a CPA for nearly 30 years and a cost segregation specialist for the past fifteen. Here are my thoughts on the subject.
A cost segregation study is most beneficial when you've recently purchased, constructed, or significantly renovated a commercial or investment property. Here are key scenarios where a cost segregation study can be advantageous:
Gather 'round, folks, for a year-end review that's more entertaining than a reality TV show finale. 2024 has been like a roller coaster at the county fair, especially with the tax drama that's unfolded faster than a soap opera plot twist.
A cost segregation study is an analysis performed by tax and engineering professionals to identify and reclassify certain components of a building that can be depreciated over a shorter period than the building itself. This can lead to significant tax savings for property owners.
In the vibrant real estate market of Southern California, investors are continually looking for strategies to enhance their returns, reduce tax liabilities, and increase cash flow. One such strategy that can significantly benefit property owners is cost segregation. Here’s an in-depth look at how applying cost segregation can turn your investment property into a more lucrative asset.
Ready to explore specialty tax savings opportunities? Schedule a consultation with Veritax founder and CEO Chris Ostler today.
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