In his latest piece in Accounting Today, Dave McGuire discusses leveraging depreciation to mitigate tax legislation uncertainty.

A cost segregation study can be an extremely beneficial tax planning tool; however, it is often an afterthought rather than a proactive conversation. A reactive approach is often acceptable but does not come without its dangers.

This Tax Season has been marred by confusion over many specialty tax issues. Join Dave McGuire and TJ Sponsel as they discuss how the delay of passage of the Tax Relief for American Families and Workers Act is affecting 174 amortization, bonus depreciation, and 163(j), leaving many CPAs and their clients in limbo.

In Georgia, all real estate is taxable unless specifically exempted by law. Real estate includes land, buildings, improvements to land, and manufactured homes affixed to land and considered real property.

This week on Let’s Talk Tax, hosts ⁠Justin Gephart⁠ and ⁠Dave McGuire⁠ discuss the latest on bonus depreciation and break down its crucial role in tax planning.

We’re dedicated to being the leading technical partner to real estate professionals across the United States. Download our Real Estate Advisory Guide, where you will find real estate strategies, case studies, resources, and more.

Tax laws are becoming increasingly complex with each passing year. The Tax Cuts and Jobs Act of 2017 (TCJA), the Inflation Reduction Act of 2022 (IRA), and other general tax updates are making it increasingly challenging to stay up to date with all the changes.

The District of Columbia (D.C.) reassesses all real property annually. The basis for assessment is “Estimated Market Value,” defined by statute as 100% of the most probable price the property would be expected to sell on the market under “prevailing conditions.” For owners of office property, this should mean a reduction should be in store given the overall market in general and D.C. in particular.

North Carolina assesses most real property at the county level based on a multi-year “cycle, ” not annually. The counties place a value on all real property as of January 1, the start of the assessment year of the cycle adopted by that county.

Leverage depreciation planning to mitigate tax legislation uncertainty

In his latest piece in Accounting Today, Dave McGuire discusses leveraging depreciation planning to mitigate tax legislation uncertainty.

CPAs and their clients have been dealing with uncertainty surrounding Section 174 legislation for the last few years. Under the Tax Cuts and Jobs Act of 2017, research expenditures under Section 174 were required to be amortized over five years starting in 2022. This ruling negatively impacted taxpayers in manufacturing, engineering and other industries. Due to the punitive nature of this provision, few tax experts or legislators ever expected this to come to reality. Unfortunately, as of today, the federal government has not been able to fix this provision.

Read the full article.

David McGuire is a leading expert on cost segregation, fixed assets and depreciation law and a co-founder of McGuire Sponsel. McGuire continues to grow McGuire Sponsel’s national presence in cost segregation and depreciation.

He is the primary resource for alliance firms in regards to how tax law affects depreciation. His knowledge in determining asset costs and classifications has held up against IRS scrutiny and has built the firm into a trusted industry resource.