The COVID-19 pandemic has dramatically altered the appraisal environment. For Machinery and Equipment (“M&E”) valuations, one example of change during this challenging time will be a temporary hold on the ability to conduct on-site inspections or inventories as...

Full Article

Medical Records: Quantifying Obsolescence

Over time, certain assets, such as machinery, equipment and other tangible personal property become less valuable. An automobile is a common example of an asset that loses value over time. The loss in value can be due to three forms of obsolescence; physical,...

Full Article

The Complex World of Machinery, Equipment, Production

The average passenger automobile has over 30,000 individual parts, a modern 747 has over 6 million parts, and the now retired NASA space shuttle contained over 2.5 million moving parts. It is impossible to calculate the combined labor, materials, logistics, research...

Full Article

Open-Air Parking Structures: Land Improvement or Building?

There has been much debate over the years concerning open-air parking structures and whether the structure, for depreciation purposes, should be depreciated as 39-year nonresidential real property or 15-year land improvements. The Internal Revenue Service Large and...

Full Article

Qualified Improvement Property Now Eligible for Bonus Depreciation Through CARES Act

Under the Coronavirus Aid, Relief and Economic Security (‘CARES”) Act, Qualified Improvement Property (“QIP”) placed in service in 2018 and after can now be considered as 15-Year Property and is eligible for 100% bonus depreciation. QIP refers to interior improvements...

Full Article

No adoption of 25-year property tax life by House of Representatives

As reported in our December 2017 publication of Insights, the U.S. Senate proposed shortening the depreciation of long-lived real property from 27.5 & 39-year to 25-years, which was not outlined in the U.S. House of Representatives version of the “Tax Cuts and...

Full Article

Impact of Shortening Commercial Real Property Tax Life to 25 Years

As part of the “Tax Cuts and Jobs Act”, the Senate is proposing shortening the depreciation of real property to 25-years. A shortening of the real property tax life from 27.5-years for commercial residential real estate and 39-years commercial non-residential real...

Full Article

Cost Segregation and FAR Accounting-A Perfect Combination

A Cost Segregation Study (“Study”) is often described as “a tax study to lower federal and state income taxes for newly constructed or acquired buildings and site improvements” or “the reclassification of real property from long-lived property to...

Full Article

Proper Component Depreciation of Acquired Real Property

A proper understanding of the depreciation of building components and site improvements of acquired properties is key to developing a qualified cost segregation study and limiting unwanted audit exposure. The IRS Cost Segregation Audit Techniques Guide (IRS Cost...

Full Article

Contact Us

Are you in need of a valuation? We’d love to hear from you. We pride ourselves on our concierge service and our complete valuation services and look forward to talking with you.