A Hidden IRS Tax Benefit for Business & Commercial Property Owners

Services for Real Estate Pros with Mega Shops

Did you know that under Code Sec. 1250 to Code 1245 of the IRS tax code that you can legally accelerate depreciation into aggressive shorter term periods by reclassifying your assets? 


As a commercial property or business owner, you want to fully understand what this means and just how fully identify, documenting and reclassifying your property’s “personal assets” in to five year categories could provide you with immediate reduction of tax liability that will extend your cash flow immediately. 


Along with an onsite engineering analysis, a good company uses all of approved IRS depreciation methodologies to identify your eligible depreciable deductions resulting in what could be a 15-40% decrease in tax liability  (Reference: http://www.irs.gov).  Meaning... your provider will not only look at what has historically been on your books or invoices from recent purchases, they will also look at those tangible personal items that are hidden in and behind your walls, in your floors and in your surrounding land.


Great companies, (LIKE OURS :) ) will cover the cost to investigate your benefit for you commit to an onsite valuation.  They also will insist that your CPA or Comptroller be integral in this process, as well as supply you with hard and electronic data for your records.

This may sound unbelievable, but your tax savings will be significant and are measurable. The proven success in this practice has been to exceed a client’s tax benefits without audit 98% of the time.  The very best thing is that on average, your tax benefits outweigh your total costs 20 to 1.  


Do the research.   We are here to answer more questions and help you move forward.








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repo homes

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Anyone notice gas went up after the election...uh oh...it starts. Anyone notice housing prices dropping like a rock? get ready for those APR loans to go belly up too. lot or repos are going to happen in california, texas, arizona and nevada

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Nov 12, 2006 07:36 AM #1
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City
The client must decide that the accelerated depreciation recapture will not impact decisions of disposition.
Nov 12, 2006 09:58 AM #2
Muneerah Maalik

Thank you for opening up the dialogue! 

In disposition, do you mean towards client positioning?  

This procedure is simply a documented change in accounting practice that is only allowed by the IRS if you have an appropriate audit proof study and documentation on file.  This procedure does not affect how or why a customer is doing business.

If a client submits a recapture detailing undocumented personal assets used for business this will not change their disposition.  It will add benefit for them by identifying ALL of their assets, especially those that can be written off against their gains.    

However, if in dispositon, you mean settlements... The IRS will issue a tax benefit/credit that the client and his/her CPA will determine how to move forward over the next 5-15 years in application to their taxes.   If the client is behind on taxes or  facing financial difficulty, this can only impact their disposition positively.  

Nov 13, 2006 01:16 AM #3
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