Insights: Cost Segregation

Learn about the advantages of performing a cost segregation study, the potential impact of proposed tax reform on cost segregation and its benefits, and why considering this important tax planning strategy for 2016 is more important than ever.

The PATH Act of 2015 extends bonus depreciation, creates a new type of bonus-eligible property and makes the 15-year recovery period for the three types of Qualified Real Property permanent.

Bonus depreciation was extended to 2019, with some modifications, as part of the latest tax extenders legislation passed by Congress in December 2015.

A recently issued revenue procedure provides certain retailers with a safe harbor method of accounting for expenditures related to remodeling or refreshing their buildings.

The repair and maintenance regulation update in Baker Tilly’s 2015 midyear tax letter provides clarification on the deduction and capitalization of expenditures related to tangible property for landlords.

New accounting method change procedures will help small businesses comply with repair and maintenance regulations.

On Feb. 26, 2014, the House Ways and Means Committee Chairman David Camp released the Tax Reform Act of 2014 (the proposal). The proposal repeals 228 sections of the existing tax code and, if enacted, would represent the most sweeping change to the income tax code since the Tax Reform Act of 1986.

In September, the IRS and Treasury Department released final regulations providing guidance regarding the deduction and capitalization of expenditures related to tangible property (commonly known as the repair and maintenance regulations). The final regulations will affect all taxpayers that acquire, produce, or improve tangible property.

The new repair regulations are a framework for analyzing whether and when costs incurred in acquiring, maintaining, or improving tangible property must be capitalized.

Building designers that participated in the design of energy efficient government-owned buildings in the last three years may be eligible to claim the Energy Efficient Commercial Buildings Deduction.

Learn from our panel of credits and incentives specialists on how a comprehensive facility review can help identify and capitalize on the tax benefits associated with major expenditures or investments that you may be considering.

Many businesses overlook significant tax credit and incentive savings that offer tax reductions, refunds, and other payouts related to investments in their facilities.

Baker Tilly has performed construction management reviews for many universities and research institutions.