It’s Not Too Late!
Have you Purchased or Constructed Property in the Last 10 Years?
And Not Had a Professional Cost Segregation Done?
It’s Not Too Late!
We can do the cost segregation, now, that you could have had done when you bought or built the property. These cost segregations are known as retrospective or look-back cost segs and can be used as the basis for recalculating depreciation deductions for prior years.
These look-back cost segs provide additional deductions (called section 481 adjustments) that save tax dollars for many taxpayers. In fact, the tax benefits of a retrospective cost seg often are more significant than the cost seg of new construction or the purchase of an existing property.
We’ve helped many clients get significant tax savings from these look-back cost segs. Ifyou like, we’ll consult with your tax accountant to advise you if a look back cost seg will save you money.
In general, amounts re-classified to shorter tax lives in a look-back cost seg will qualify for an automatic accounting method change with the IRS. Some of the accounting details: Your accountant may already be aware of the reporting process for this change: the correct procedure for a taxpayer to change its accounting method is the timely filing of Form 3115, Request for Change in Accounting Method. Rev. Proc. 2004-11 modifies Rev. Proc. 2002-9 and other revenue procedures to conform with § 1.446-1T(e)(2)(ii)(d) of the temporary Income Tax Regulations.
Kent Osborne
Tax Advisors pllc
