Commercial Property Incentives
We always say, “Don’t do another real estate transaction without talking to the experts at CORE first”.
Cost Segregation Study
Cost Segregation is a lucrative tax strategy that was approved by the IRS in 1997. The concept of cost segregation is to reclassify specific real property assets that usually receive a depreciation life of 39 years (commercial real property) or 27.5 (commercial residential) into “tangible personal property” that is treated as five (5) year property or land improvements which are treated as fifteen (15) year property for depreciation purposes. Due to this improved tax treatment, portions of the electrical, plumbing, mechanical systems, and site improvements of a building along with hundreds of other components can be allocated to shorter lives translating into immediate cash flow.
“Cost Segregation Studies are a lucrative tax strategy that should be considered in almost every real estate purchase”
United States Treasury Department
Because of improved tax laws, commercial property owners can now receive lucrative tax incentives when replacing or retrofitting lighting, HVAC equipment and roofing systems. Under the new disposition tax laws, a company now can take a 100% tax deduction on qualified property when being abandoned or disposed of in the current tax year.
CORE will provide all the necessary engineering calculations and documentation required for your business to claim all of this additional depreciation. This hidden treasure can quickly add up to hundreds of thousands of dollars in new found money that will literally pay for the newly-installed energy efficient technologies.
Property Tax / Appraisal
Many companies pay more in local property taxes than in both sales and income taxes combined, and unfortunately, they assume that it’s just another fixed expense. However, this doesn’t have to be the case. Lowering property taxes by negotiating a fair and equitable assessment is one of the most important steps a company can take to immediately reduce its expenses and increase its cash flow. While most firms pursue income tax strategies, far too few subject property tax assessments to the same degree of scrutiny.
CORE has testified and negotiated property tax reductions with local and state authorities throughout the country for clients including: Hotels, Light and heavy manufacturing, Shopping malls, Chemical and oil refineries, Senior Living Facilities, Office Buildings, and Apartment Buildings.
Defer capital gains tax with Opportunity Zones under the new Tax Cuts & Jobs Act (TCJA)
The recently passed Tax Reform Act of 2017 (TCJA ) included a potential tax break for investors. An investor may defer capital gains taxes on the sale of any opportunity zones asset. These taxes can potentially be deferred until December 31, 2026, or the date of a sale (whichever is earlier). As discussed below, this original capital gains tax is reduced over time, and if held long enough, new appreciation on the investment can be realized tax-free.
How does the Opportunity Zones and Opportunity Fund work?
ARE YOU LEAVING MONEY ON THE TABLE?
We find that 8 out of 10 businesses and commercial property owners are leaving money on the table every year.
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