tax savings
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.
