A Blog About Tax Savings for Building Owners
If you own a commercial building, a cost segregation study could significantly reduce what you owe for income taxes. We offer free estimates so you can see the potential savings / deferral and have something inhand to review with your tax advisor.
There’s still time to complete a study before the tax deadlines, but that window is closing fast. I work nationwide and can help you take full advantage of accelerated depreciation strategies.
Upstate Business Journal has a story this morning noting that Charlotte-based Red Cedar Partners has acquired Greenville-based VanRock Holdings.
“Since we founded VanRock Holdings nine years ago, we’ve utilized our industry expertise and local knowledge to provide strong financial results for our investors,” said Brian DeBruin, co-founder of VanRock Holdings. “Now under the Red Cedar Capital Partners umbrella, we’ll continue to provide best-in-class acquisition, construction and disposition of for-sale and build-to-rent communities.”
Greenville Business Magazine has a more in-depth article about the acquistion.
Red Cedar Capital partners on LinkedIn and Red Cedar Homes website.
We are a month away from the July quarterly tax payments being due for business owners and building owners. If you own a building and have not done cost segregation yet, you could get an estimate on your building and use those estimated taxes benefits to help you calculate and lower your quarterly tax payments throughout 2025 (or a future year if you’re reading this after 2025).
We always recommend you strategize and consult with your own tax advisor on this. But let’s say you currently owe $15,000 per quarterly tax payment. You’ve owned a building for a few years and can benefit from the accelerated depreciation or bonus depreciation but you just haven’t done cost segregation on your property. So you reach out and get an estimate or a preliminary analysis. Let’s say that estimate shows we’ll save you $50,000 in income taxes for this coming year. You’re currently paying $15,000 per quarter for your taxes….with this estimate, maybe you decide to cut that number in half or more and keep that money in your bank account to use as you see fit. But this is how you can use a cost segregation estimate to help lower your quarterlies. Consult with your tax advisor.
Consolidation continues within the accounting industry as the big firms continue to get bigger. Atlanta-based Mauldin & Jenkins has announced that Greenville-based Bradshaw, Gordon & Clinkscales is merging into the company.
There are many reasons for the mergers and acquisitions to happen as firms look to expand their reach, offer more services and engage with more clients. Greenville, SC is a fast growing area in the Southeast. We have a number of small and midsized firms along with big regionals like Cherry Bekaert and Elliott Davis. It makes sense that Mauldin & Jenkins wanted a footprint here in the Upstate. That seems like a natural expansion for them from Atlanta.
Here is the release that was published about the merger. Peter Tiffany is the Managing Director Bradshaw, Gordon & Clinkscales. He is quoted as saying, “We are thrilled to join forces with a firm that shares our commitment to client service, integrity, and long-term relationships. This merger represents a strong cultural fit and an exciting opportunity to expand our capabilities while continuing to put our clients’ needs at the forefront of everything we do,” says BGC Managing Partner Peter Tiffany.
Per the web site, Crexi, there were 205 Industrial properties over $499,000 that have sold so far in 2025 through May 29, 2025. In the image above, you can see the distribution of the industrial properties. The Upstate of South Carolina which includes Greenville, Spartanburg and Anderson had 77 sales. The Midlands area which is Columbia, had 57. Charleston had 38 closed sales.
Crexi lists industrial properties as:
If you need an estimate for cost segregation, I’m based in Greenville and work all over the state of South Carolina as well as across the U.S. Here’s a link to some of the industrial properties I’ve studied.
Oil Change Buildings have special status in the IRS tax code – kind of like C-stores but not completely. Often times these entire buildings are classified as 15 year class life as long as they meet the IRS guidelines on 50% of their revenue coming from oil (check with your own tax advisor on this). We do study a lot of these because many operators don’t get 50% of their revenue from sales of oil.
This building was placed into service in 2024 when bonus depreciation was 60%. The owner’s CPA was on the ball and had us run some numbers to see if it might make sense to do a cost segregation study on the building to see what we might squeeze out especially with the 5 year class life property. If the 5 year class life property comes in anything north of 5%, it will be a win for the owner as they will be able to take the balance of the depreciation not taken as bonus over the next 4 years. So in 2025, 2026, 2027 and 2028, they will get an increased depreciation deduction above what they would have gotten had they not done the study and just taken 60% bonus depreciation.
No doubt there have been many of these oil service buildings that have gone into service at some point in 2024…many of them could also be taking advantage of these smart tax strategy but most won’t. Either they won’t be aware of it or their CPA won’t be. It’s nice to see CPAs who are paying attention to these details.
Brands that we often see as oil change or oil service buildings include: Jiffy Lube, Take 5, Valvoline and Strickland Brothers.
Congress is debating the Trump 2025 Tax Bill for the fiscal year 2025 – 2026. The House has passed a bill and it sits in the Senate. What will happen with 100% bonus depreciation? When will it apply?
If you’re trying to follow along, I believe the House bill is called, “One Big Beautiful Bill” or “H.R. 1.” The bill will extend the 2017 Tax Cuts and Jobs Act (TCJA) provisions so many in the commercial real estate world loved!
I had some conversations recently with commercial real estate brokers and commercial building owners. Some where thinking that they might make 100% bonus depreciation retroactive to 2024. That is HIGHLY unlikely and I have not heard that discussed. It is not in the House bill. What they plan to do is to make 100% bonus depreciation available to properties placed into service as of 1/20/25 – Trump’s Innauguration Day. So you an do your studies now and apply the 100% bonus depreciation on your 2025 taxes when you file them at some point in 2026. You do not need to wait to do the cost segregation study until Congress passes the bill and the President signs it. Get your studies done to know what your tax liabilities look like.
I do cost segregation all over the country.
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