Titan Echo - Cost Segregation Solutions

News for CPAs: New Tax Regulations allow you to retire individual building components. Must be Done This Tax Season.   CPAs and Building Owners Take Full Advantage of this New IRS Tax Regulation and Save Thousands of Dollars.   Many accountants and tax professionals are not yet aware of the new partial disposition tax regulations that were enacted in the middle of tax season this past August. For the first time ever, a structural component of a building can be disposed of individually, allowing the taxpayer to realize significant additional depreciation deductions.  However, if the component was replaced after 1/1/14 it MUST be addressed on this year’s tax return, or it will forever be embedded in the building’s basis.   Here’s the example summarized from Treasury Decision 9689:   $20MM bldg placed in service 2011. On 1/1/14, depreciation reserve is $1,261,000. Replaced the entire roof in 2014. Assume $1 million is the cost of the retired roof. On the 2014 retur...

Check out this psychology experiment that was designed to measure the cost of your distractions: When you sit at your computer trying to write or work, there is a real danger that you will get interrupted by an email, instant message, text message, or phone call. Even if you do your best to skip past the distractions, there still may be a moment where you have to stop and decide whether to answer the phone or check your email—and that itself is a distraction. What influence do all those small interruptions have on your ability to perform complex tasks? This question was addressed in a clever set of studies by Erik Altmann, Greg Trafton, and David Hambrick, described in a paper in the February 2014 issue of the Journal of Experimental Psychology: General. To explore the question, the researchers had to develop a complex task that would allow them to observe errors. Participants saw a computer screen with a box in the center. In each trial, there was a number and a letter. One of the cha...

Cost Segregation Basics Cost segregation is an alternate method of depreciation in which pieces of a property are classified into separate categories for tax purposes. Instead of applying a typical 39-year depreciation cycle on the entire property and its contents, Cost Segregation allows some asset classes to be depreciated faster, resulting in near-term tax savings. The classifications are created with a Cost Segregation engineering study (sometimes called a “cost seg”). IRS rules provide guidance on how to properly classify these assets and how various asset classes may be depreciated under the Modified Accelerated Cost Recovery System (MACRS). Proper asset classification can be a gray area, but software exists that can allow property owners to do an initial evaluation and determine if a more detailed cost segregation study is worthwhile for their situation. Cost Segregation allows some asset classes to be depreciated faster, resulting in near-term tax savings. Benefits of Cost Se...

Cost Segregation Basics Cost segregation is an alternate method of depreciation in which pieces of a property are classified into separate categories for tax purposes. Instead of applying a typical 39-year depreciation cycle on the entire property and its contents, Cost Segregation allows some asset classes to be depreciated faster, resulting in near-term tax savings. The classifications are created with a Cost Segregation engineering study (sometimes called a “cost seg”). IRS rules provide guidance on how to properly classify these assets and how various asset classes may be depreciated under the Modified Accelerated Cost Recovery System (MACRS). Proper asset classification can be a gray area, but software exists that can allow property owners to do an initial evaluation and determine if a more detailed cost segregation study is worthwhile for their situation. Cost Segregation allows some asset classes to be depreciated faster, resulting in near-term tax savings. Benefits of Cost Se...