Year-end tax planning is now in full swing and is considered by many accountants to be their most important time of the accounting cycle to improve their client's financial position. A critical message we consistently hear is the importance of demonstrating your firm's value and the resulting direct impact on retaining clients, expanding your client base and improving your bottom line. Year-end tax planning is a great opportunity to do exactly that by presenting ideas to your clients to optimize their tax position. Cost segregation is a value-added opportunity that many accounting firms have incorporated into their year-end tax planning.
 
Many accountants are aware of cost segregation, but only consider it when a client buys a building or constructs a new property. Many acquisitions and new projects have been put on hold or shelved completely due to the current economic crisis. However, opportunities for retroactive cost segregation studies can and should be uncovered in the year-end tax planning process for clients that have a cost basis of $1 million or more in real property. A retroactive study can be performed without the problems associated with amending prior year tax returns or IRS approval. The difference between the allowed depreciation and what was actually claimed in prior years can all be used on the current tax return which could result in savings of $100,000 or more for the 2010 return.
 
A free model of projected benefits can quickly be prepared to determine if a study would be beneficial for your client. The study can then be completed in time to reduce or eliminate your client's next estimated Federal and state tax payments.

 

Call us at 732-548-3855 for more information or fax your depreciation schedules to 732-549-8844 so that we can prepare a free model of benefits. 

 

Jerry Kootman
Managing Tax Director
jerry@crscostseg.com

Cost Recovery Solutions, LLC
www.crscostseg.com
407 Main Street
Metuchen, NJ 08840
Phone: (732) 548-3855
Fax: (732) 549-8844