Depreciation and Changes in Use of Real Property

For tax practitioners whose clients own commercial and residential properties, this article is worth a read. It suggests testing whether the property qualifies for residential rental or nonresidential property. Residential rental property depreciates at a 30% faster rate so getting it right will make a difference to the client. In either case, the article points out that further benefits can be achieved through the use of a Cost Segregation Study.

http://www.aicpa.org/publications/taxadviser/2012/october/pages/clinic-story-03.aspx

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