If you operate a business out of your Club Auto Sport condo, you can take advantage of significant tax benefits that are set to expire in 2011.
The cost-segregation accounting method is a way to accelerate the depreciation of a real estate investment. Instead of recapturing the cost of your real estate investment over the traditional 39 years, cost segregation lets you break the applicable building components down into 5-year, 7-year and 15-year property.
With the economic recovery still underway, a ruling known as Internal Revenue Code (IRC) Section 179 was extended through 2011 and increased to let owners of commercial real estate write off up to $500,000 of 5-year, 7-year and 15-year property in the first year. This extraordinary deduction - which had been one-fifth of that amount just a few years ago - combined with standard write-offs of real estate taxes and other expenses, can reduce your after-tax cash requirements to nearly zero.
For more information about tax and other benefits, download our informative white paper and the brochure.
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