Will I still benefit if I am subject to the passive loss rules (PAL), net operating losses (NOL), or the alternative minimum tax (AMT) or because I am a nonprofit entity that doesn pay income taxes?
As for the latter, you definitely will not benefit. If you don’t pay income taxes, additional deductions will not help you. As for the other three, however, if you have income from other passive activities against which to offset passive losses, then the losses generated by the building are currently deductible. Also, if you lease your building to a business that you own and materially participate in, if by leasing the building to your business at the highest possible rental FMV you generate rental income, additional depreciation will benefit you to the extent of that income. If a NOL is generated, you may be able to carry the loss back two or more years to years with income and claim an immediate tax refund. If you are subject to the AMT or if a study causes you to become subject to the AMT, you will still benefit from a cost segregation study, just not by as much, as long as you are not limited by PALs or NOLs. We can incorporate AMT scenarios into our projection. AMT lives are the s
Related Questions
- Will I still benefit if I am subject to the passive loss rules (PAL), net operating losses (NOL), or the alternative minimum tax (AMT) or because I am a nonprofit entity that doesn pay income taxes?
- If I carried back a net operating loss two years for federal purposes, am I required to carryback the net operating loss two years for Mississippi purposes?
- What is the significance of the passive activity loss limitation (PALL) rules for real estate investors?
