ICS was professional, responsive, and easy to work with throughout our cost segregation process - which was focused on a short term rental condo in Tuscaloosa, AL. They answered our questions promptly and delivered the final report on time with clear communication along the way....
Roby Development leverages expertise and creativity to deliver high-quality developments that are thoughtfully designed and financially sound. Joel Roby, Principal at Roby Development, provided ICS Tax with a 5 out of 5 for overall experience, timeliness of service, and likelihood to recommend, noting: "Great to work with!"....
The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, significantly reshapes real estate tax planning by accelerating deductions while narrowing energy incentives. The Act permanently restores 100% bonus depreciation under §168(k), allowing immediate expensing of qualified property, including assets identified through cost segregation studies. New §168(n) enables full expensing of qualifying portions of newly constructed nonresidential buildings used in manufacturing and production, creating major benefits for industrial and logistics projects. OBBBA also permanently restructures the Opportunity Zone program with rolling 10‑year designation cycles and enhanced rural incentives, including a 30% basis step‑up through Qualified Rural Opportunity Funds. §179 expensing limits increase to $2.5 million, further supporting capital investment. At the same time, OBBBA accelerates the sunset of key energy credits, making careful timing and proactive planning between 2025 and 2031 essential to maximize tax benefits and after‑tax cash flow....
IRS Notice 2026‑16 provides long‑awaited guidance on Qualified Production Property (QPP), allowing eligible manufacturers to claim up to 100% bonus depreciation on qualifying production facilities. The guidance clarifies what buildings and activities qualify, outlines election and timing requirements, and explains how QPP interacts with cost segregation. For manufacturers expanding or reshoring U.S. operations, QPP can significantly accelerate depreciation and reduce the after‑tax cost of new facilities....
The One Big Beautiful Bill Act (OBBBA) introduced Qualified Production Property (QPP), a new category of real estate eligible for 100% bonus depreciation under IRC §168(n). QPP refers to nonresidential real property that is constructed or acquired after January 19, 2025, placed in service before January 1, 2031, and used directly in a qualified production activity....
The One Big Beautiful Bill Act of 2025 (OBBBA) marks a major overhaul of federal tax policy, terminating or reshaping several high-impact incentives related to real estate, clean energy, and business investment. The legislation ends the §45L Energy Efficient Home Credit for homes sold or leased after June 30, 2026, and phases out the §45X Advanced Manufacturing Credit for wind components and certain critical minerals. It also accelerates the phaseout of the §48E Clean Electricity Investment Tax Credit, establishing hard cutoffs for project eligibility....
With the passage of the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation was made permanent for qualified property placed in service after January 19, 2025. This legislative change significantly enhances the value of cost segregation, a proven tax strategy that accelerates depreciation deductions by identifying and reclassifying building components into shorter recovery periods—typically 5, 7, or 15 years—instead of the standard 27.5 or 39 years. By front-loading depreciation, cost segregation can substantially improve cash flow and reduce tax liability in the early years of property ownership....
ICS Tax Engagement Review: Very responsive, flexible to one specific request we made. Results were right on expectations. Overall, a great experience. Steve Brooks. CFO...
When converting personal property to investment use, taxpayers must maintain clear documentation of both the original cost and the fair market value at the time of conversion. This documentation is crucial for supporting depreciation deductions and avoiding IRS challenges. In Sherman Derell Smith v. Commissioner, T.C. Memo. 2025-24 (March 24, 2025), the U.S. Tax Court ruled against the taxpayer, who had disputed the IRS’s denial of a depreciation deduction for a rental property on his 2018 federal income tax return. The court found that Smith failed to establish a proper depreciable basis under IRC §167 and Treas. Reg. §1.167(g)-1. This case underscores the importance of maintaining accurate records when transitioning personal property to investment use....
President Donald Trump signaled a strong commitment to reinstating full bonus depreciation under the Tax Cuts and Jobs Act (TCJA), a provision currently set to phase out by the end of 2026. The reinstatement, according to Trump, would be made retroactively to January 20, 2025. If implemented, this move would have significant implications for real estate investors, making cost segregation studies even more valuable in maximizing tax benefits....