WHY MULTIFAMILY PROPERTIES CAN PRODUCE MEANINGFUL RESULTS
Accelerated depreciation deductions that improve near-term cash flow. A detailed fixed-asset schedule that can support future renovation and disposition accounting. Better visibility into appliances, finishes, land improvements, and other property components. The ability to evaluate previously acquired properties through a look-back cost segregation study. For cost segregation multifamily apartment buildings, repeated unit layouts and common- area or site improvements can create many separately identifiable assets. The main benefits may include: HOW BONUS DEPRECIATION MAY APPLY Eligible property with a recovery period of 20 years or less may qualify for bonus depreciation when all statutory requirements are met. Under current federal rules, certain qualified property acquired and placed in service after January 19, 2025, may be eligible for a 100% special depreciation allowance. Owners should review IRS depreciation guidance because acquisition dates, placed-in-service dates, elections, related-party rules, and state conformity can affect the result.
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