Cost Segregation
Cost Segregation Analysis in the News
Cost segregation studies are in the news recently due to the Peco Foods, Inc. v. the IRS court case, wherein the tax court upheld the IRS’ denial of Peco Foods’ reclassification of assets identified by a cost segregation study.
Late last year, another cost segregation study ran into trouble with the IRS in the case of Ronald Pearce and Daryl Pearce, Plaintiffs, v. Department of Revenue, State of Oregon, Defendant. Since one of the big advantages of a cost segregation study is the supposed approval by the IRS, some folks may be wondering if a cost segregation study is still an appropriate way to reduce tax liability and create additional cash flow.
‘Tis the Season for Cost Segregation Studies
Tax Season Cost Segregation Studies: Several CPA firms in the Sacramento area have contracted with me this year to do Cost Segregation Studies not only for their own real estate, but also to provided these tax-saving studies for their clients. So far this tax season I’ve looked at law offices, food processing facilities, optometrist offices, CPA complexes, optics labs, agricultural properties, and a variety of rental office complexes—all of these business owners will benefit from tax savings when they submit their cost segregations studies to the IRS.
Agricultural Cost Segregation Studies: What’s Available for Depreciation?
Agricultural Cost Segregation Studies are the up & coming smart tax move here in the Sacramento Valley, agricultural center of California. And it’s about time: Although cost segregation studies have been available for decades, they’ve only recently hit the mainstream. Agriculture business folks in Northern California are realizing what a great benefit these studies can be to their bottom line.
The general concept of Cost Segregation Studies, in which personal property—such as removable flooring, plumbing and electrical components connected to personal property—are segregated from the real property of foundations, walls and other structural components, works well for properties such as office complexes, apartment buildings, single-family rental units, manufacturing plants or shopping malls.
Sacramento Area Accredited Senior Appraiser Unites Accounting & Appraisal Acumen
Winters, CA – Norcal Valuation owner Jack Young has earned Accredited Senior Appraiser (ASA) status in the American Society of Appraisers, the oldest international major appraisal organization and the only one representing all disciplines of appraisal specialists.
Norcal Valuation specializes in appraisals of machinery and equipment throughout northern California, from factory to farm, and conducts cost segregation studies on income-producing buildings such as single family rental units, restaurants, hotels, manufacturing facilities, wineries, food processing, and industrial park complexes.
