As a real estate investor, you must definitely be putting efforts into how to minimize your tax liability. One tax strategy you should be focusing on is cost segregation. It acts as a shield in reducing taxable income for real estate owners by depreciating a few components at an accelerated rate. This blog is all about cost segregation, what it is, and the benefits of conducting a CSS.  Before we deep dive into cost segregation let’s first understand what depreciation is. An Introduction To Depreciation As mentioned in one of our previous blogs, depreciation refers to deducting the loss from the value of an asset over a certain period of time. Please refer to the blog “the impact of cost segregation on property tax“. So now, let’s quickly get into how a cost segregation study works, when should a CSS be conducted, and the role of the Tax Cut and... Read More

Do you know that depreciation has a tax impact? Obviously, it has a tax impact because it is a method that is used to calculate the cost value of any property. Depreciation, in general, helps a company or property owner to reduce the amount of taxes they are paying for a year. When the company’s tax bill is lower, the income funnel increases which is a beneficial factor for any business. This is the reason that makes many small to large-scale businesses practice depreciation.  Ways for calculating depreciation There are 3 different types of depreciation to calculate the value of an asset. They are Double declining (when you utilize the asset more on initial years of useful life) Declining balance(Only when the asset is highly used during the first few years) Straight-line depreciation (It is used for assets that have no time pattern to follow) Every method helps the depreciation... Read More

Texas does not have any state property tax as such but does have taxes that are all locally assessed. Property taxes are the major source of revenue that pays for the services the local government offers. Property taxes are determined based on the appraised property values and sometimes the values might seem high and that is where exemptions come into play. Exemptions can help you lower your tax burden. Texas offers exemptions both partial and total exemptions. The entire property gets excluded from taxes in case of a total exemption whereas a partial exemption excludes only a certain percentage from taxation. Applying for a property tax exemption In many cases, property tax exemptions require an application, and these applications are submitted to the appraisal districts on or before May 1st. The chief appraiser then analyses if the property qualifies for the exemption or not Types of exemptions Residence homestead A... Read More

For those living in Texas, taxes are one of the certainties in life but it doesn’t mean you will have to agree with the amount of taxes you pay. Property tax valuation amounts are not carved on stones, it can be reduced if taxpayers make use of the property tax appeals to their fullest advantage. This blog is all about how, when, and why should taxpayers submit a property tax appeal letter. Let’s start off with answering the question, Why? Why submit a property tax appeal letter? Once you receive a valuation notice from your assessor, you must be shocked looking at your valuation amount. You always have a dual choice in your pocket, one is either pay the high tax bill because of the lack of time to appeal or file an appeal and lower your tax bill. But then, there must be a question bothering you. What is... Read More

As a property owner, you have every right to protest with regards to your property tax appraisal. Not many are aware of the protest process or are familiar with the appeal procedure. Are you concerned about the appraised value of your property? Unequal appraisal, not happy with the actions taken by your county’s chief appraiser or the appraisal review board, or did the chief appraiser or the ARB fail to send you a request notice? This blog is for you. You can find insights on the tax appeal procedures here. Property Tax Appeal Procedures Informal Review This step can be simply called a meeting with the appraiser. If you are not happy with the appraised value of your property you can review it with a member of the appraisal district staff.  You are given details of the address or phone number for an informal review with the district appraiser before... Read More