In partnership with Engineered Tax Services (ETS), Alloy Silverstein recently hosted two webinars that highlighted a couple of real estate tax strategies for building owners, developers, contractors, and more.
Typically, buildings are depreciated for tax purposes as a whole. A Cost Segregation Study is a tax strategy where elements and components of a commercial property are segregated into different categories and classes in order to accelerate depreciation for those different assets. This allows building owners and real estate investors to capture potentially significant tax savings. The presentation also discussed the tax implications of bonus depreciation and partial asset disposition.
Ideal candidates for cost segregation include owners of commercial or investment property; leasehold improvements exceeding $50,000; paying federal income tax; operating as a for-profit entity; and planning to hold the property for at least one more year.
To incentivize energy-efficient construction and improvements, there are some key tax deductions and credits available. In short, 179D is a popular tax incentive that enables building owners and designers to claim a tax deduction for energy-efficient commercial building property including HVAC, building envelope, and interior lighting. 45L is a federal tax credit available for new construction or substantial energy-efficient upgrades in residential or multi-family properties. The Inflation Reduction Act updated these tax incentives with new limits and restrictions.
If you’d like more information on these multifaceted tax strategies as part of your overall, long-term tax and financial strategy, please reach out to an Alloy Silverstein accountant and advisor today.
About the Presenter
Kim Lochridge, Executive Vice President at ETS, has extensive experience in the practical application of tax codes as they relate to real estate and energy efficiency incentives. She is a frequent presenter and “big-league tax expert” for Fortune 500 companies, high-net-worth individuals, family offices, engineers, and CPAs nationwide, and is also a member of the Tax Committee for the Real Estate Roundtable in Washington D.C.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
