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Celebrating
our 25th Anniversary
How Lookback saved with a cost
segregation study
| Year |
Depreciation without
cost segregation1 |
Depreciation with
cost segregation2 |
Increase |
| 2004 |
$123,050 |
$311,135 |
$188,085 |
| 2005 |
$128,200 |
$457,240 |
$329,040 |
| 2006 |
$128,200 |
$324,490 |
$196,290 |
| Total |
$329,450 |
$1,092,865 |
$713,415 |
1$5 million buiding cost
depreciated over 39 years.
2$3.5 million building cost
depreciated over 39 years, $500,000 in land developments depreciated
over 15 years, and $1 million in personal property depreciated over 5
years.
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Advertising costs
Know what’s deductible and what’s not
Businesses once regularly locked
horns with the IRS over whether they could deduct
advertising costs as current expenses or must capitalize and
depreciate them. Many businesses believed they had to
capitalize these costs only when they created a new asset.
But the U.S. Supreme Court’s landmark 1992 decision in
INDOPCO, Inc. v. Commissioner and a subsequent revenue
ruling shed light on this issue. This article explains how
the IRS views advertising expenses and what you need to do
to stay on the right side of the law.
Read more
Education saving strategies
529 college savings plans now better than ever
When first introduced, 529
plans were the hottest ticket to a college savings fund. But
sales abuses perpetrated by a few investment advisors
tarnished the beauty of 529s. Now, after federal regulators
and state agencies helped straighten out the programs, 529s
are once again one of the best tools for reaching your
college savings goals. This article gives the low-down on
how to fund a plan and how they work. Plus, a special chart
compares 529s with other savings options, such as Coverdell
Education Savings Accounts.
Read more
Tax Tips
Charging employment taxes: Priceless
This section presents brief
notes on charitable remainder trusts, state income tax,
employment tax and inventory methods.
Read more
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How long should you keep
business records?
If your filing cabinets are
bursting at the seams, it may be time to dispose of
papers you no longer need. To help you get started, we
offer a record retention guide to determine what
business records to keep and for how long.
Read more
Cutting-edge tax
strategies for the under depreciated
To survive and thrive in
today’s highly competitive business environment, you
must constantly be on the lookout for strategies that
can give your business an edge. One opportunity you
shouldn’t overlook is depreciation. The rate at which
you recover fixed asset costs can have an enormous
impact on your finances. And recent IRS guidance makes
it easier to correct past depreciation mistakes — which
can give your cash flow a much-needed boost. This
article reviews how a cost segregation study can save
your business money and how to classify property.
Read more
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