As we get ready to wrap-up the third quarter of 2012, it is a great time to explore the potential benefits of the various engineering-based tax solutions available today. Tax tools such as cost segregation, EPAct/Section 179D, and now the temporary regulations for Repair vs. Capital, are great sources for generating cash flow for owners of commercial real estate.
A unique feature of the 2012 tax season preparation is the host of traditional tax tools that are set to expire at the end of the calendar year. Currently, both bonus depreciation and all qualified leasehold improvement legislation are set to expire on December 31, 2012. While we can point to past instances where these programs were reinstated at the closing of the year, current financial and political climates do not ensure we can count on these benefits being available for the near future.
The Bedford team is strongly encouraging those that have the opportunity to place projects into service before the end of the year to do so. As always, our goal is to ensure our clients achieve the best economic benefit while maintaining a defensible position.