Side Effects of Cost Segregation  

Oleh:

Maples, Larry ; Hayes, Robert

Jenis: Article from Bulletin/Magazine
Dalam koleksi: Journal of Accountancy vol. 213 no. 4 (Apr. 2012), page 48-52.
Topik: Cash Flow; Accounting Standards; Effects; Like Kind Exchange; Cost Allocation

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.32 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

Increased current cash flows and net-present-value savings from accelerated tax depreciation resulting from cost-segregation studies have been discussed in the JofA and other professional literature. But the initial cost-segregation decision can determine later tax side effects, both positive and negative. This article explores some of the tax benefits and drawbacks linked to the use of cost segregation that can materialize in subsequent periods. Cost segregation, or allocating costs or values of a building's components into appropriate classes of personal property to shorten their depreciation recovery period, can be applied to buildings used in a business that were recently constructed, purchased, expanded or remodeled by the taxpayer. The IRS has taken the position that a change in recovery period is a change in accounting method. Cost segregation complicates a subsequent like-kind exchange, because Regs. Sec. 1.1031(j)-1 requires the taxpayer to group multiple properties in exchange groups of like kind or like class.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali