Apartment Owners Find Tax Relief Through Cost Segregation
- Topics:
- Tax Incentives,
- Taxes
- Tags:
- Depreciation,
- Finance,
- Financial Planning,
- Free Trade,
- Income,
- Income Tax,
- O'Connor & Associates,
- Operational Accounting,
- Taxes
- Source:
- O'Connor & Associates
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Overview: Apartment owners can face staggering expenses to maintain apartment communities. The upkeep of even a modest community could involve groundskeeping, unit renovation, and replacements, such as parking lot asphalt and fencing. Another steep expense is federal income tax - and in some areas an additional state tax on income - but through an innovative tax-reduction process known as cost segregation, the depreciation of property components can be used to help lower federal taxes. Depreciation is a key non-cash tax deduction. Increasing depreciation generates federal income tax reduction since taxable income is reduced. Cost segregation increases depreciation by accurately identifying the correct deprecation life for many components of the real estate.
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Format: HTML | Date: Mar 2006 | Pages: 3
