Commercial Real Estate Blog by Madison
Tag Archives: cost segregation study

Off-the-Wall Savings – How Businesses with Demountable Walls are Saving on Taxes

By: Eli Loebenberg, CPA, Chief Executive Officer, Madison SPECS

The traditional office workspace has come a long way since the classic mahogany desk in a corner office. Thanks to technological advances, many employees can and do work from anywhere, which makes creating a vibrant and thriving office a new challenge. Today’s leading companies are creating office space that encourages collaboration with an interactive atmosphere. The modern office environment focuses on the employee experience within the company culture.

Many times, this environment is created with moveable office space made from demountable walls. Demountable or moveable walls are partitions that are pre-engineered and manufactured. Demountable walls offer businesses a simple way to build out and customize their work space.

Companies opt for walls that can be configured with customizable panels and different options for desk and storage spaces. These flexible interiors allow organizations to change the aesthetics, functionality and size of various office spaces in order to suit changing needs. Demountable walls also come with technological add-ins, such as plug-and-play power and data, so there is no need to rewire cables every time there is a change.

This trend in demountable walls has spread to corporations, educational institutions, health care and government organizations. While the initial project costs for demountable walls are higher than standard construction, this cost difference can be offset by major tax savings. Continue reading

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Texas Real Estate Forecast – Sunny and the Future looks Bright

By Moshe Hildeshaim, Director of Operations, Madison SPECS

My first visit to the Lone Star State last week was to attend the International Council of Shopping Center’s (ICSC’s) Texas Conference and Deal Making. This annual event gathers real estate owners, developers, retailers, brokers and other real estate professionals. I met with property owners of shopping centers, multi-family properties, mixed use buildings, etc. to discuss the tax benefits of a cost segregation study. The general atmosphere of the show was extremely positive….. This is consistent with findings in two major reports regarding the current and future commercial real estate industry. Continue reading

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The Emperor’s New Reg’s – New IRS Guidelines May Open New Cost Segregation Opportunities for Property Owners

Written by Danny Wechsler

In December of 2011, the IRS published new temporary regulations (T.D. 9654) in relation to capital expenditures under Sec.263(a). I bring this topic up now because the American Institute of Certified Public Accountants (AICPA) recently released a paper discussing these new regulations. Continue reading

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Early Retirement for your Assets

By Moshe Hildeshaim

While you may not be able to retire early, certain depreciable assets in your real estate portfolio may be eligible for early retirement. While we are all familiar with the concept of a cost-segregation study, there is another aspect to a cost-segregation study that – although not as well known – offers the potential of huge tax savings. This is known as the “write off component”. It is what should happen when you decide to renovate a property and remove its original assets. Continue reading

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We Don’t Want Your Business!!

As a company with services to offer, we are (as are all other businesses) inherently always in the “sales mode”. This is what it takes to stay ahead of the pack, or at least to be in the race, in today’s environment. No matter what place or setting in which we find ourselves, our antennas are tuned for the next opportunity to ‘bring home the bacon.’

This blog, however, is called ‘The Trusted Advisor’. It’s titled this way because we view ourselves as the trusted advisor to commercial real estate investors. As a trusted advisor, our role is to objectively present all sides of the business opportunity and hopefully steer our client in the best direction for the client’s bottom line, not ours. I’ve often advised clients not to move forward with one or other of our services when I felt it wouldn’t produce the results they were looking for or generate the proper return on their investment. Continue reading

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Lessons Learned From AmeriSouth vs. Commissioner

A recent tax court memo raised a lot of questions regarding cost segregation. I would like to give
you some clarification and perhaps even answer some of those questions. Continue reading

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Hidden in Plain Sight – Tax Benefits in your Commercial Property Leases

The value of any commercial real estate asset is typically found in its retail, office or industrial leases. A thorough understanding of these leases is essential for a profitable acquisition and successful property management. That’s why real estate investors need and should accept nothing less than having meticulous and up-to-date lease abstracts before making any acquisition of a shopping center, office building, warehouse, industrial facility, etc.

In addition to the investor’s standard focus on cash flow and revenue generating potential, a savvy investor will also analyze the leases for the tenant improvement clauses to determine whether any of the improvements are legally owned by the landlord. The question of TI ownership is crucial as the owner of the improvements may be able to benefit from a cost segregation study, where eligible assets can be identified and reclassified for accelerated depreciation. Continue reading

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