How Cost Segregation can Help Maximize IRA Incentives

The Inflation Reduction Act of 2022 has been a windfall for many businesses, including those looking to upgrade their facilities for energy efficiency or adding solar panels. Unfortunately, the implementation of these incentives has caused much confusion. During this webinar, McGuire Sponsel’s Dave McGuire will review 179D, 45L, Section 48 credits, and other provisions.

McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a recently purchased auto dealership in Colorado.

McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a newly constructed food manufacturing facility located in Jefferson, Georgia.

Cost Segregation is an extremely valuable tax planning tool that provides significant savings to real estate owners by increasing cash flows through accelerating depreciation deductions, but widespread misconceptions around these variables often lead taxpayers to leave a large amount of money on the table. Read about five common cost segregation misconceptions that our experts regularly observe.

McGuire Sponsel was contacted by a CPA firm to carry out a property tax appeal for a historic hotel in downtown Bozeman, Montana.

McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a recently purchased apartment complex located in Des Moines, Iowa.

McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a recently purchased multi-tenant medical office building located in Winter Park, Florida.

While cost segregation studies are primarily concerned with depreciable assets, one non-depreciable asset plays a critical role in the study: land. In fact, the IRS’s most recent audit technique says the first step in a quality purchase price allocation cost segregation study is determining land value. 

MACRS consists of two separate systems for depreciation: the General Depreciation System (“GDS”) and the Alternative Depreciation System (“ADS”). GDS is far more common and well known compared to ADS. Although there are situations when a taxpayer may elect to use ADS, most taxpayers only use the alternative system when it’s mandatory. When ADS is required to be utilized, tax planning can become quite a challenge.

There are several tax-saving strategies for real estate professionals. When it comes to a property’s physical assets, depreciation and Section 179 deductions are two primary methods for reducing tax liability.