Ask The Experts
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 Q.
How do I take advantage of the bonus depreciation and section 179 limit
changes that are outlined in the Economic Stimulus Act of 2008?
A. The most important thing to remember is to consult early with your tax professional for proper tax planning throughout the year. Time sensitive issues should be dealt with as soon as possible for maximum savings.
Cost segregation creates options for utilizing both Section 179 and/or bonus depreciation. Cost segregation creates 5-, 7-, and 15-year class lives thus allowing a significant portion of the building to qualify for bonus/Section 179 depreciation. Why not give your client more options to create depreciation expense?
Placing first-use items in service in 2008 is critical for receiving
50% bonus depreciation. The short one year window may not
benefit larger construction projects, but if a project can be started and
completed in 2008, a cost segregation of the assets will yield
tremendous tax relief.
Section 179 allows for increased expensing of eligible assets. If you
were hesitant to make that big equipment purchase now is the time to do it and
receive the maximum tax benefit before the Section 179 limit reverts to the lower level.
All in all, every tax situation is different and there is no specific answer
to this question. We recommend that you sit down with your tax
professional and discuss your plans in-depth so that you can take full
advantage of the tax savings provided in the Economic Stimulus Act of
2008.
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The CRS Advantage
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Cost Recovery Solutions, LLC (CRS) is a specialized engineering firm trained exclusively in the unique discipline of Cost Segregation. CRS has distinguished itself as an industry leader by providing their clients with a seamless integration of cost segregation into their business. We are the cost segregation provider many accounting firms employ as their cost segregation resource due to our unique qualifications which include:
- Our tax director has lectured extensively on the topic of cost segregation including his recent presentation at the AICPA national Practitioner's Symposium
- The IRS consulted CRS in developing their current Audit Techniques Guide on cost segregation
- Our engineering director is one of a small group of accredited senior appraisers (ASA) in the disciplines of both 'Cost Surveys' and 'Machinery and Equipment' from the American Society of Appraisers
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Contact Us
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For more information or a complimentary projection of benefits, please contact:
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