Cost Segregation Can Enhance the Benefits of Expanded NOL Carryback Provisions
With the recently passed law extending the carryback period to five years for net operating losses, companies and individuals are looking for ways to maximize their available tax refunds. Accelerating tax deductions into 2009 through a cost segregation study can greatly enhance the available refunds.
Cost segregation studies can be performed on new and old buildings to determine what portion of the building may be classified as personal property. Once a portion of a building is classified as personal property it can be depreciated over a much shorter tax life. When studies are done on buildings that have previously been placed in service, you can catch-up the depreciation on the reclassified personal property. This can result in significant deductions in the year the study is completed.
