Cost Seg Building

A Blog About Tax Savings for Building Owners

Page 11 of 19

Strip Mall Sales and Dry Cleaner Contamination Concerns: What Sellers Might Consider

May 6, 2024 /

Buying a strip mall as an investment? Do you know if there has ever been a drycleaners in that strip mall before? Were they cleaning on the premises or was it strickly just a drop off and pick up store?

This a very informative string of Tweets from The StripMallGuy about concerns regarding dry cleaning tenants and if they have every used the space you are considering buying as you evaluate a strip mall. He has an entire thread and I would encourage you to read it if you’re in the business of buying strip malls. And to his point…if you are a seller trying to sell a strip mall, at least consider getting a Phase 1 study completed prior to listing the property. It will make life easier on everyone and not waste buyers’ time nor their brokers. Give him a follow on Twitter. He always has valuable insights. You can follow me as well at @costsegbuilding.

Cost Segregation Example on a $2 Million Commercial Building

May 3, 2024 /

I often get asked exactly how can a building owner benefit from doing cost segregation. Lots of times this comes up in conversation with commercial real estate brokers. I’ve recorded a pretty straightforward 4 minute video that hopefully will be of help to both CRE brokers representing building owners buying property as well as for commercial property owners.

We always recommend that owners should consult with their own tax advisors before moving ahead with a study. I’m not given tax advice – just an example of how an owner may benefit by doing cost segregation.

Get an estimate for your building. Rather than having a conversation with your tax advisor as to whether or not you might benefit from this without a formal estimate in your hands is just guesswork. Too many times the tax professional will say I don’t think it’s worth it. But when you have the numbers in your hand and can discuss the situation intelligently, then the parties can make an informed decision instead of guessing based upon the tax professionals prior experience or opinions of this tax strategy.

BTW, this doesn’t need to be done just on $1-$2MM+ buildings…we study all kinds of buildings – big and small – inexpensive and expensive. If you have a commercial property or residential investment property with a cost basis of more than $175k, it’s worth running the numbers. I work all over the country. There’s no cost or obigation to have us run the numbers. I publish lots of information on my blog at www.costsegbuilding.com. Find me on Twitter, Instagram and Youtube under the handle – @costsegbuilding
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Commercial Real Estate Brokers and Owners – Slash Your 2023 Tax Bill with Cost Segregation!

May 2, 2024 /

This post is especially for commercial real estate brokers who own buildings and have extended their 2023 taxes. Assuming you have some tax liability for your earnings in 2023, if you own a commercial building(s) and/or residential investments and you have not done cost segregation on those buildings, this would be a great time to see if this can work for you. This may be especially beneficial if you have a significant tax liability and if you are planning on holding your buildings.  This also goes for those who aren’t CRE brokers but own commercial real estate. If you own a profitable building that you plan to hold for another 3 or more years, why not look at the impact a cost segregation study could have on your tax liability and cashflow for the property.

Get an estimate in your hands so you can have an informed conversation with your own tax advisor to see if doing a study now makes financial sense.

#costsegregation #commercialbuildings #CRE #CREbrokers #commercialbrokers #commercialrealestate #buildingowners #residentialinvestment #investments #income #incometaxes #2023taxes #taxliability #cashflow #cssi #johnmurphycostseg #costsegbuilding #taxbenefits #buildings #taxsavings

John Murphy Cost Segregation

Extended Tax Returns – Still Time to Do a Cost Segregation Study

April 16, 2024 /

Another April 15th tax deadline has passed. Tax professionals everywhere will finally start to come up for air after having their heads down cranking out tax returns and supporting documentation. Many building owners extend their taxes and are looking for their tax advisors to review their cost segregation estimates to decide if they should move forward. I’m already starting to see the dam break meaning some CPAs are starting to respond again :).

If you extended your tax returns, you now have 6 months to get them completed. Actually corporate returns are due Sept. 15th and personal returns due Oct. 15th. If you have a building and are considering cost segregation, let’s connect and have our team run the numbers for you. There’s plenty of time to get these done. Most studies take about 4-6 weeks to get completed from the time we have all the documentation into our study team. There’s no cost or obligation for us to run the numbers for you. Give me a call – John Murphy 864-276-1448.

Energy-efficient Panel System by Haven

April 12, 2024 /
Photo: Haven Panels for Multi-family

This looks like a phenomenal new product introduced by Haven Panels. It looks like the product is called Titan and it’s an integrated framing and insulation system that will make homes more energy-efficient and stronger. It also makes building homes much faster and easier as labor becomes a bigger challenge in the future. I don’t know how this will stand up to the requirements to build near the coasts due to hurricanes, but it sure looks like this might be a great solution.

Here’s a posted from the CEO on LinkedIn.

Cost Segregation for AFC Urgent Care Building

April 11, 2024 /

I happen to have been driving by this one regularly as I saw the parcel being developed along Butler Road in Mauldin / Greenville area. So it was nice to get the call from one of the brokers involved in selling the building to see if I could run some numbers for the new owner for cost segregation study.

These buildings are very nice. I enjoy working with brand new buildings – who doesn’t, right?

This one is just getting underway so I don’t have any ballpark results to share but I do expect that it will perform quite well. Medical offices generally do very well with studies. There is often lots of specialty plumbing, electrical, lighting etc. that get identified as 5 year class life property. Whereas most “offices” seem to produce maybe 8-12% for 5 year class life property, most of the medical offices I’ve been working on are seeing 18-20% for the 5 year. 15 year will do fine of course as there is a decent parking lot that surrounds this building.

CREW Upstate – Sustainability in CRE Luncheon at Hartness Hotel

April 11, 2024 /
Photo: John Murphy, Cost Seg Building – Hotel Hartness

I had the opportunity to attend the luncheon today at the Hotel Hartness with CREW Upstate. The topic for today was sustainable building in commercial real estate. Hotel Hartness is a gorgeous new building and is an example of adaptive reuse for construction development.

We had three panelists talk about what they see as the trends itin sustainability were for CRE. Lots of discussion about LEED buildings and LEED credits.

CREW Upstate is a membership organization with the purpose to help women succeed in commercial real estate. There are a few of us men who are part of this to help support their efforts. There’s a lot that goes into commercial real estate and this group is comprised of brokers, bankers, insurance pros, engineers, architects, designers, inspectors, lawyers, property managers, financial analysts etc…I’m sure I’m missing some professions.

Here’s a picture of the panelist we had speak today. Jennifer Wolf was unable to make it.

One of the things I left with was that Diane Coleman had mentioned that there is now LEED 5 which as I understand is the latest iteration of LEED being proposed. Right now they are taking comments from the public from April 3 – May 20, 2024. You can find more at the link I just posted above for LEED 5.

Align Capital Partners Launches Professional Services Offerings

April 11, 2024 /

Align Capital Partners announces acquisition in the tax space of CSSI – Cost Segregation Services, LLC and TaxIncennovations. It’s a growing professional services offering with cost segregation, 179D energy savings and Research & Development tax credits.

As a rep for CSSI I can say that Align Capital Partners has brought some good change to the company. We are more responsive and getting more systematized for scale. I’m looking forward to the growth ahead.

Will Congress Vote to Extend 100% Bonus Depreciation Through 2025?

April 11, 2024 /
Photo: Politico

Many of us thought this was a done deal. In fact, I had thought for some time that Congress would extend 100% bonus depreciation. Part of me thinks they might eventually make it permanent as part of the tax code but there are many in Congress who like to have things like this to negotiate for other deals. If that’s the case, they probably won’t make this permanent.

The House of Representatives passed their bill about 10 weeks ago now. The Senate is still sitting on the Tax Relief for American Families and Workers Act. With all the wrangling going on over Ukraine, Israel and US border funding, things seems to be stuck in the Senate.

I’m so focused on commercial real estate that it hasn’t really dawned on me how this bill impacts other industries. Apparently this is a very big deal for American farmers and they also want this passed.

PWC has a good explanation of what’s in the bill that the House had passed at the end of January.

Here’s the Senate Finance Summary. It’s a 9 page PDF will lots of key details.

Most building owners who I know have opted, as they normally do, to extend their tax returns. This year it’s beneficial so they can see if they might end up getting a nice bump from 80% to 100% for their 2023 tax returns.

Cost Segregation Presentation and Training for Commercial Real Estate Brokers

April 11, 2024 /
Photo: SVN Blackstream Greenville, SC – John Murphy presenting cost segregation to CRE brokers

One of the things I enjoy about the work I do is getting an opportunity to speak with commercial real estate brokers. I can do this for residential brokers as well as they will often be working with investors or they might be buying their own property.

If you work at either a residential or commercial real estate brokerage and are looking for a speaker for your meetings, I’d be happy to come in and speak as long as you’re within a reasonable driving distance for me. I’m based in Greenville, SC so I certainly anything here in the Upstate is accessible. Also, the Charlotte metro and Columbia are only 90 minutes away.

Here’s a presentation I recorded to help commercial real estate brokers understand cost segregation.

Connect with me on LinkedIn or follow me on Twitter @costsegbuilding.

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