The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. This marks the first comprehensive tax law reform since 1986 and the legislation has created a wealth of new opportunities for the thoughtful owner of commercial real estate. A thorough cost segregation study is the vehicle by which TCJA benefits may be obtained. The Tangible Property Regulations (TPRs) are still in play in this post tax-reform era, and in fact augment the utility of the TCJA. Again, a thorough cost segregation study is the key to fully leveraging all possible benefits.
• Understand how cost segregation is the vehicle by which tax savings opportunities are obtained.
• Use a TPR flowchart to assist in the expense vs. capitalization decision-making process.
• Identify possible opportunities for leveraging the TPRs.
• Explain the significance of the date 9/27/17 in determining bonus rates for new construction projects and acquisitions.
• Understand the implications of the Interest Deduction Limitation.
• Review the current status of Qualified Improvement Property under the TCJA.
• Become familiar with Section 179 and Opportunity Zones under the TCJA.
Cost Segregation – Vehicle for Savings
Tangible Property Regulations (TPRs)
Tax Cuts and Jobs Act (TCJA)
– Bonus Depreciation
– QIP Under the TCJA
– Interest Deduction Limitation
– Section 179 Expensing
– Opportunity Zones
Recommended CPE: 1.0 Credit
Program Level: Beginner/Intermediate
Prerequisites: General Background in Accounting, Depreciation and Cost Segregation
Advanced Preparation: None
Field of Study: Taxes