Are you looking for new strategies to increase cash flow for your medical facility, then this is the best time to opt for a cost segregation study. If you are planning to construct a new medical facility or purchase an existing building then cost segregation will help you reduce your income tax liabilities and also add cash flow to your bottom line. How does cost segregation work? A CSS identifies and classifies assets of the medical facility to minimize the income tax burden. The building however is depreciated over 39 years but a few components of the building have a shorter life and can be depreciated over a period of 5, 7, or 15 years. Purchasers now can head back up to 1987 to correct the tax lives of assets that could have taken advantage of the Modified Accelerated Cost Recovery System. Taxpayers are now allowed by the IRS to... Read More

El Paso city officials are seeking ways to source revenue in the 2022 budget. The best part is, sources say this will not have an increase in the property tax rate. The Chief Financial Officer said the city will maintain the same property tax rate for the 2022 fiscal year budget. In April, the CAD announced that the property value in the counties will be increasing. Despite the tax rate being the same, the taxes are expected to go up because of the valuations. This is because of the increasing cost of wood and other building materials. However, homeowners are not likely to see an increase in the property tax rate of the city because of the increase in the value of a property. Is it good to protest? No matter your home values go up, down, or remain the same it is always better to protest your taxes year... Read More

The Texas county appraisal districts usually evaluate the value of the properties in their respective counties. After the protest period has expired, and after the taxing entities have agreed with the tax rates, the property tax bills are sent out to property owners either electronically or by e-mail. This begins on the first of October every year and property owners have time until the 31st of January to pay their taxes before the interest or penalties begin to occur. But, what if it’s almost the end of January and you have still not received your property tax statement. This blog is all about that. Get insights on why this might have happened and what steps can be taken to avoid such situations. Why have you not received your property tax statement? The property tax statements are usually sent out by the county appraisal districts where your property is located. Below... Read More

This tax strategy can help you increase your cash flow and help reduce the current tax liability, both at the same time. If you are looking to hold your hard-earned cash, then say YES to Cost Segregation. Understanding cost segregation Cost segregation is one of the best tax-saving tools that can help a taxpayer accelerate depreciation and reduce tax liability if appropriately documented. As per the IRS, a building usually depreciates over a period of 39 or 27.5 years in the case of non-residential properties and 27.5 years in the case of residential properties. Let us imagine you own a residential rental property and do not opt for a CSS. Your property will depreciate based on the straight-line depreciation method i.e. 27.5 years. But, when opting for a CSS, a portion of the assets can be re-classified as personal property which will help depreciate the properties on a much faster... Read More

A cost segregation study identifies personal property assets that are grouped with real property assets. The study then separates the personal assets for tax purposes. Personal property includes both a building’s non-structural elements, indirect construction expenses, and exterior land improvements. Conducting a CSS requires the experience of an engineer who has a good understanding of construction finance. The engineer examines the construction drawings, the electrical plans, and the blueprints and then separates the structural and mechanical components from the ones that are classified as personal property. A cost segregation study that is well documented will help you: A  cost segregation study identifies the cost of a building that would normally depreciate over a period of 27.5 to 39 years. It then re-classifies the cost which results in accelerated depreciation. The cost for non-structural items such as sidewalks, wall coverings depreciates over a shorter period such as 5,7 or 15 years.... Read More