Gotta Have Websites
Free Investor Trade Magazines
Hot Home Deals
Commercial Property Owners - Save Thousands
Own a Car
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Gotta Have Websites
www.treas.gov/auctions/ - Government
auction for property
www.vrqueencity.com/ - Need to Buy or
Sell a business
Enter any address and find out:
o
How much is it worth?
o
Who owns it?
o
How much did they pay for it?
o
Square footage, room counts, and more!
www.emeraldbayinvest.com/links/morelinks.html
- This is the links portion of my website.
Many cool links here
FREE Investor Trade Magazines
Apartment Finance Today
Multi-Housing News
Commercial Property News
Multifamily Executive
And much more……….
http://affiliates.freetrademagazinesource.com/7/categories.aspx
HOT Home Deals
The Wall Street Journal (May
9th, 2007) reported that though there is a national downturn in the
general housing market, there are still some hot markets. Real estate whether commercial or residential
is situational based on local factors not national circumstances. WSJ reports that there seems to be no single
secret to a cities success, but many of these cities missed the real estate
boom from 2001 to 2005. Here is their
list.
These
city’s appreciation has exceeded
the
Save Thousands
Cost Segregation
(Componentizing) – Your tax break from the IRS.
The IRS allows commercial
property owners to accelerate depreciation on the assets that are identified as
personal property through a process known as Cost Segregation. Accelerated depreciation equal reduced
taxable income levels.
Does Your Property Qualify?
Yes,
if you…
ž
Own a commercial
property with a valuation of $500,000 or higher OR made leasehold improvements
totaling $350,000 or higher
ž
Pay federal
income taxes or have paid federal income taxes in the last year
ž
Operate as a
for-profit entity
ž
Plan on keeping
the property for at least 1 more year
A Cost Segregation Analysis
(CSA) can be performed before the acquisition of a building. Personal property can be separated from the
building costs and the two costs can then be broken out in the sales agreement
thus reducing the transfer taxes.
Properties
that may qualify for cost segregation analysis savings:
n
Existing
property acquired after 1986
n
New construction
or Future construction
n
Existing
buildings undergoing renovation or expansion
n
Leasehold
improvements, both past and present
n
Commercial property
about to be acquired
Typically,
only 3% of a building’s component costs are classified to reap the greatest tax
benefits
Assets such as carpeting and
cabinets have properly been classified and claimed as “personal property”.
The
remainder of the building is assigned a depreciable life of 39 years
(27.5 years for residential real
estate).
Tap
the Cash Reservoir in Your Commercial Properties Accurate Classifications
Questions
to ask:
n
Is there more
than 1 electrical plug in each room?
n
Do all of the
walls penetrate the ceiling tiles, and are they all load bearing?
n
Is the
decorative millwork throughout the property glued, nailed, or hung on the wall?
n
Is there a
kitchen in the building?
A
“Yes” answer to any of these questions indicates that you will probably benefit
from a Cost Segregation Analysis.
20%
– 40% of a building qualifies as
personal property.
A much larger percentage of
a building’s assets are identified, classified, and segregated for accelerated
depreciation for federal income tax purposes.
Your bottom Line Benefits
$
Increased cash
flow allows you to control the investment of your money
$
Reduction in
federal and state tax liabilities
$
Repairs &
remodeling will be less costly due to the accelerated depreciation related to
the detailed breakdown of building components
$
Build savings
into your architecture for the properties you propose to construct; the BCA can
actually reduce the cost per square foot
$
Reduction in
real estate property taxes
$
Prior to
purchase, separating personal property from building costs will reduce the
transfer tax basis
$
Correct any
misclassified assets and claim “catch up” benefits in the current year
$
Benefits bank
loan qualifications
$
Demolition &
Rehabilitation: Allows property owners to write off rather than capitalize
certain assets
$
Reduction in
insurance costs
$
Bridges the gap
between engineering, construction and accounting systems
$
Achieve faster
building & acquisition cost write-offs
$
Qualify for
possible refunds on prior taxes paid
Why This Deduction Exists
n
In 1997, the US
Tax Court ruled in favor of Hospital Corporation of America (HCA), that property qualifying as tangible personal property
under the former Investment Tax Credit (“ITC”) rules would also qualify for
purposes of federal income tax depreciation.
n
HCA is
considered a landmark decision for owners of commercial properties.
n
In 1999, the IRS
released Legal Memorandum 1992-1045 in which the IRS agreed not to contest the
(HCA) reclassification of building costs into different asset categories that
result in shorter depreciable lives.
Revenue
Procedures 2002-09 & 2004-11
The IRS allows taxpayers to
correct the tax lives for assets placed in service back to 1987. You can recapture all of the understated depreciation
expense for any asset that has been improperly classified in previous years.
NOTE: I am not a CPA and this is given for info
purposes only. Check with a real estate
CPA or certified advisor for more information.
Own a Car
Found this on Yahoo
Auctions. By the way if you want to find
great properties just one word…. EBAY. Yes EBAY is
quickly becoming one of the most popular places to list homes and commercial
properties.
This is a car lot in
Life
"LIFE'S JOURNEY is not
to arrive at the grave safely, in a well
preserved body, but rather to skid in
sideways, totally worn out, shouting
"Holy shit, what a ride!"
- Mavis Leyrer age 83
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Thank You
JW Najarian
818-353-9100