Advanced Investors Subgroup

At the next Advanced Investors Subgroup on Wednesday June 8, , we’re going to be covering tax changes and accounting.

There has not been a ton of tax changes in the real estate world in the past few years, but  a couple of the biggest things that people are talking about now are cost segregation and bonus depreciation for rental and other business properties.

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Cost segregation is a method of speeding up the tax depreciation deduction on a real estate property.  As the tax code reads right now, nonresidential real estate is depreciated over 39 years.  Cost segregation allows owners to break out portions of a real estate property and depreciate them over 5, 7, and 15 year periods.  This allows owners to greatly reduce their taxes in the short term.  Because of the cost to implement cost segregation, it is not recommended in properties with a cost less than approximately $1,000,000.

Bonus Depreciation is a depreciation method where the IRS allows businesses and individuals to depreciate the majority of the value of certain types of assets in the year in which they are purchased.  Only certain types of assets qualify, and they have to be new (not used) assets.  Bonus Depreciation can be used to increase tax savings in both residential and commercial rental properties

The following areas will be covered:

1. Overview of the passive activity rules (will help everyone understand what type of properties cost segregation and the current depreciation rules would benefit)
2. Discussion of what cost segregation is and how it is done
3. Discussion of other strategies that can be used to speed up depreciation deductions (i.e. land improvements)
4. Discussion of current Bonus Depreciation and Section 179 Depreciation rules
5. Time for Questions and Answers

• Our guest speaker is Tim Avent, CPA Hollingsworth, Avent, Averre & Purvis, PA. He is a graduate of the UNC Kenan-Flagler Business School with a BSBA and Masters Degree in Accounting. His career began with Ernst & Young, LLP and he has been with Hollingsworth, Avent, Averre & Purvis, PA since January 2008. Tim’s experience covers tax preparation and consultation for specific real estate transactions, and clients with multiple residential, commercial, and investment real estate holdings.

• Location:
  A delicious Italian Buffet at:
  Casa Carbone!
  6019-A Glenwood Avenue
  Raleigh , NC   27612

Schedule:

-   Lunch will begin at 12:00 noon

-   At 12:30 we will start a networking session

-  At 1:00 the guest speaker will start presentation

Please register for the event as soon as possible at your earliest convenience.

Register Here!