Commercial real estate: Tax depreciation acceleration & property tax reduction
May 30, 2019 at 2:00 p.m. ETCost segregation and other tax fixed asset studies help companies improve cash flow by deferring millions of dollars in federal and state income tax. With the new depreciation rules contained in the Tax Cuts & Jobs Act (TCJA), companies could have an even greater opportunity for tax deferral – if they understand how the depreciation rules work with other TCJA provisions, state income, and property tax law.
Property taxes—both real and personal—represent a significant portion (up to 35%) of a company’s annual state and local tax burden. However, as with nearly all state and local taxes, property tax rules often vary not only between states but also within states. This can leave many taxpayers overpaying taxes on their personal and real property, or even noncompliant with required tax returns and the related taxes, especially if a business operates within one or more states.
Property taxes—both real and personal—represent a significant portion (up to 35%) of a company’s annual state and local tax burden. However, as with nearly all state and local taxes, property tax rules often vary not only between states but also within states. This can leave many taxpayers overpaying taxes on their personal and real property, or even noncompliant with required tax returns and the related taxes, especially if a business operates within one or more states.
