CXRE » Accounting

Cost Segregation for Accelerated Depreciation

The Benefits of Cost Segregation for Accelerated Depreciation Clients often ask us about the benefits of cost segregation for commercial office buildings, bonus depreciation, and other methods to minimize their tax liability. Using cost congregation for accelerated depreciation is one of the methods savvy commercial real estate investors use to limit their taxable income. Commercial real estate depreciation can be confusing, but you can amplify the depreciation on an office building by closely following the updated tax codes. Here’s a quick video from our friends at The Anderson Group explaining cost segregation for accelerated depreciation. What is Cost Segregation for Accelerated Depreciation? First, let’s define some of the terms we’re talking about here: Depreciation In real estate, depreciation refers to the loss of an asset’s value over time. Most real estate suffers from normal wear and tear over the years, making it less valuable as it ages. Therefore, the IRS allows commercial property owners to […]

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5 Real Estate Accounting Best Practices for Investors

For many investors, real estate accounting isn’t exciting. Buying, selling, and managing properties are where the fun is – but bookkeeping? Not so much. However, real estate accounting is where the investing game is won and lost. Keeping track of the money coming in, the money going out, and the data trends is the most critical part of running a successful real estate investment business. If you’re an investor who manages your own real estate accounting, how can you be sure you’re following the best practices? What should you do to stay on top of your expenses? How can you review performance metrics to ensure your properties are profitable? We’re breaking down five real estate accounting best practices for commercial real estate investors. 1. Follow State and Federal Regulations for Real Estate Accounting Real estate accounting can feel tedious because there are a myriad of state and local regulations that will inform how you handle […]

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