Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Cost Segregation - Tax Deductions(Business Taxes)

By Patrick O Connor Subscribe to RSS | July 30th 2012 | Views:
loading
 
  



Taxes are your enemy, but tax deductions are your friends. Taxes are the great bane of most businesses. Alas, business deductions act as a salve to cool the burning and itching of your bank account.

Business taxes can be summarized simply as calculating your total revenue, reducing this amount by as many tax deductions as you can and then paying tax on the remaining amount.

Owners of investment real estate can take advantage of a depreciation technique called cost segregation that could save them hundreds of thousands of dollars in federal income tax this year. It does so by increasing their depreciation and reducing their income tax rate from 35 percent to as little as 15 percent. It can also help defer payment of much of the tax until a building is sold.

Typically, the increased depreciation in early years of ownership can offset much of the income derived from the property. When depreciation advantages expire, the property can be sold, and taxes are paid at the capital gains rate of 15 percent. In such cases, this defers income taxes by five, 10 or even 15-plus years.

The primary goal of cost segregation is to identify building components that can be reclassified from real property to personal property. This results in a substantially shorter depreciable tax life and accelerated depreciation methods. Ordinarily, the cost of real, or section 1250, property is recovered over lengthy periods (27.5 and 39 years for residential and nonresidential property, respectively), using the straight-line method of depreciation. Personal, or section 1245, property is recovered over considerably shorter periods (5, 7 or 15 years), and employs accelerated methods of depreciation, such as 200% or 150% declining balance.

Patrick O Connor - About Author:
O'Connor & Associates is a major provider of real estate services including Cost Segregation in Houston, feasibility studies, tax reviews, apartment inspections,
Cost Segregation, federal tax reduction and due diligence.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/cost-segregation-tax-deductions-business-taxes.htm

Related Finance Articles Subscribe to RSS

How to Cut Down Tax-Time Stress
Published by Mia Vitug on April 4th 2012 | Finance
Tax Day is just around the corner. 24/7 Card shares some tips on how you can cut down tax-time stres...
 
The Duties and Responsibilities of a Manhattan Financial Planner
Published by Alice Hussyy on July 17th 2012 | Finance
In case of manufacturing activity the capital required would be comparatively higher than the capita...
 
Salt Lamps - Getting Auto Insurance Quotes Online Saves Time and Money
Published by  ALMA TERRY on May 7th 2012 | Finance
Salt Lamps it is surprising to see the sheer number of online insurance companies. Which are all eag...
 
On-Demand Payroll: Payroll Customer Relationship Management
Published by SalesBabu on December 13th 2011 | Finance
On-Demand Payroll: Payroll Customer Relationship Management...
 
With Fast Secured Business Loan and Expand Your Business
Published by Davidwarner on February 1st 2012 | Finance
Investments must be made by individuals in the exercise of any significant activity. And to make the...
 
How Bankruptcy Counseling Helps?
Published by Shaz Memon on May 15th 2012 | Finance
The article is discussing the benefits of bankruptcy counseling and various other aspects of pre-ban...
 
Treasury Bond Rates- Information Worth Having
Published by David Bens on November 25th 2011 | Finance
Treasury bonds are debt securities with fixed interest rates that are marketable and possess a matur...
 
SARS efiling and its benefits
Published by Dkfinancialplanning on February 10th 2012 | Finance
SARS efiling is free online service that will make the work of tax payers easier. This is one of the...
 
Financial Planning made easy with Life Insurance Plans
Published by Max York on March 29th 2012 | Finance
The traditional definition of life insurance plans has undergone a change. This is because of the di...
 
Powerful Tips regarding the Best Dividend Paying Stocks and options
Published by Isol on August 13th 2012 | Finance

It can be astonishing exactly how usually folks forgotten safeguarded and constant revenue. Just...
 
1 Year Loans - Enjoy Your 365 Days with Fast Cash
Published by Satty Jones on February 2nd 2012 | Finance
People who require the cash for long term then 1 Year Loans will be best option. Without any providi...
 
Same Day Cash Loans: Immediate Cash Immense Help
Published by Shone Miecle on December 15th 2011 | Finance
Same day cash loans are actually payday loans which the salaried people in UK look for. Same day cas...
 
Bad Credit Loans New Zealand: Finance for Bad Credit Holders of NewZealand
Published by Tristan Tanner on February 6th 2012 | Finance
Bad credit loans New Zealand is a variety of short funding for the benefit of the people of New Zeal...
 
How to Prepare and Submit Your Tax Returns Easily
Published by Clemencia Summers on May 18th 2012 | Finance
Paying taxes is a part of your life as an employee or as a businessman....
 
Choosing a Collection Agency for Your Business
Published by Andrewsiddle2011@yahoo.com on February 7th 2012 | Finance
We are leading US Collection Company offering solution to commercial collection. We have dedicated s...
 
Best Places to Buy Property in Singapore
Published by Geno on March 28th 2012 | Finance
Do you know, around 42% of the population in Singapore are foreigners. According to Savills Singapor...
 
Agreement with Your Creditors during Debt Settlement
Published by Rajkumar Kaushal on June 23rd 2012 | Finance
Making use of credit facility has become what is making the world become more digitized because of i...
 
Consider outsourcing your debt settlement business
Published by John Taylor on December 5th 2011 | Finance
If your business involves debt resolution services, the business may quickly spin out of control due...
 
Where to Find Utah Mortgage Lenders
Published by Jacobirvan on February 28th 2012 | Finance
Are you currently in search of a number of the perfect Utah mortgage companies and Utah mortgage len...
 
The Disadvantages of Bad Credit
Published by Larry Shannon Blucher on April 17th 2012 | Finance
Selecting a credit repair company for the purpose of improving your credit score is an important dec...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...