We wanted to provide an update to our April 10, 2020 article “Virtual Inspection approaches in the wake of the COVID-19 Pandemic”. Over the past two months we have completed a number of inspections using in part some of the following procedures: Provided clients with...

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Virtual Inspection approaches in the wake of the COVID-19 Pandemic.

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...

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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...

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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,...

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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...

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Qualified Improvement Properties; Are Cost Segregation Studies Necessary?

In a previous PLC article we discussed recent changes to the treatment of Qualified Improvement Property (“QIP”) as part of the CARES Act; most importantly that QIP placed in service in 2018 and after can now be considered 15-year Property and is eligible for 100%...

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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...

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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...

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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...

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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...

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