Tax Warrior Chronicles

Seize the Day: There’s Never Been a Better Time to Consider Cost Segregation

Posted on Wed, Jun 17, 2020

Everyone wants to maximize tax savings on their commercial real estate, and while Cost Segregation Studies have long been a solid IRS-approved strategy, these days they are more popular than ever, especially with some of the changes under the CARES Act,Today’s guest blogger, Terri S. Johnson of Capstan Tax Strategies, is here to explain why “cost seg” studies are all the rage, and to walk us through the top-three prime cost segregation scenarios.    

 

Simply put, Cost Segregation is an engineering-based analysis in which specific property components are identified and reallocated into modified cost recovery system (MACRS) class lives.  Treating the components as personal property or land

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Depreciation Changes Under CARES Act - Qualified Improvement Property

Posted on Tue, Mar 31, 2020

Taxpayers and practitioners nationwide have been waiting over 2 years for a technical correction to fix an error in the 2017 Tax Cuts & Jobs Act (TCJA) related to depreciation of Qualified Improvement Property (QIP).  The error was finally fixed in the recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act), and the change has created significant tax-reduction opportunities for some taxpayers.

 

Background

Prior to the TCJA, non-residential improvements were classified as either Qualified Leasehold Improvements, Qualified Restaurant Property, or Qualified Retail Improvement Property.  The TCJA replaced these three types with one “Qualified Improvement Property”

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7 Tax-Saving Stocking Stuffers for Year-End 2019

Posted on Tue, Dec 10, 2019

By: Rosie Flite

 

As 2019 winds down, the upcoming Holidays are at the forefront of everyone’s mind. Between planning gifts, meals, and travel arrangements, many forget the importance of year-end tax planning.  With that in mind, we offer seven (7) strategies that may save everyone money when April 15th comes around in 2020.

 

  1. Avoiding Estimated Tax Underpayment Penalties

To avoid the IRS charging penalties for underpaying estimated taxes, individuals must meet at least one of these three criteria:

  • a person's total tax due after withholdings is less than $1,000, or
  • they have paid in at least 90% of their taxes for the current year, or
  • the individual has paid in at least 100% of the
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The New Tax Law: 2018 Year-End Planning Tips for Businesses

Posted on Wed, Nov 28, 2018

By: Joseph Brunell, CPA

 

The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017, and became effective on January 1, 2018.   For many businesses, the TCJA provides benefits such as reduced corporate tax rates, removing the corporate alternative minimum tax, and a new pass-through business income deduction.  However, many tax planning ideas go beyond the big-ticket items.  The Tax Warriors® at Drucker & Scaccetti are here to provide some of the top year-end tax planning tips.

 

Take advantage of business expensing under Section 179

 

Generally, taxpayers can elect to immediately expense up to $1 million of business tangible personal property placed into service after

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Planning for Expiring KOZ Tax Exemptions

Posted on Tue, Aug 14, 2018

By: Clare Porreca, CPA, MT

 

Many businesses in Pennsylvania have benefitted from the Keystone Opportunity Zone Program(“KOZ”).  Some are set to expire soon.  They can be extended for an additional 10 years if certain job creation and capital investment requirements have been met.  If they are not extended, however, businesses previously exempt from many taxes will now be subject to them all.  For those businesses, careful planning is in order.

 

The goal of the KOZ Program is to help drive business and investment growth in economically distressed communities.  The KOZ does this by reducing or eliminating taxes for businesses located in these specific geographic zones.  Below is a list of

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