How have recent tax law changes affected cost segregation?
Beyond tax refunds to individuals, there was one substantive pronouncement of the Economic Stimulus Act of 2008. It altered Section 179 to increase ‘immediate depreciation expensing’ to $250,000 per year from $125,000 and to restore a 50 percent bonus depreciation. Those new pronouncements only apply to new construction and new, major remodeling. But, what they do is enhance the value of implementing a cost segregation program. If you’re doing a major remodel or constructing a building this year, you would be absolutely remiss if you didn’t perform a cost segregation study. It would be a major, major oversight. How has the green movement in construction affected cost segregation? Organizations today are being more environmentally conscientious, even though the materials for ‘green’ buildings are more expensive. But, if you go down that path, there are more components that qualify for shorter depreciation lives, like solar-energy panels. I should mention that other tax credits not perta
Beyond tax refunds to individuals, there was one substantive pronouncement of the Economic Stimulus Act of 2008. It altered Section 179 to increase ‘immediate depreciation expensing’ to $250,000 per year from $125,000 and to restore a 50 percent bonus depreciation. Those new pronouncements only apply to new construction and new, major remodeling. But, what they do is enhance the value of implementing a cost segregation program. If you’re doing a major remodel or constructing a building this year, you would be absolutely remiss if you didn’t perform a cost segregation study. It would be a major, major oversight. How has the green movement in construction affected cost segregation? Organizations today are being more environmentally conscientious, even though the materials for ‘green’ buildings are more expensive. But, if you go down that path, there are more components that qualify for shorter depreciation lives, like solar-energy panels. I should mention that other tax credits not perta
