The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017, marking the first comprehensive tax law reform since 1986. The TCJA brings new opportunities, as well as some challenges, to the commercial real estate and construction industries. This CPE will focus on several provisions of the Act that may further enhance the utility of a traditional cost segregation study and will explore applications of the TCJA in the construction industry.
1. Understand how the TCJA may broaden the scope of a cost segregation study for owners of real estate through changes in Bonus Depreciation, Qualified Improvement Property (QIP) and Section 179 Expensing
2. Explain the significance of the date 9/27/17 in determining bonus rates for new construction projects and acquisitions
3. Use a decision tree to determine whether property may be depreciated using MACRS class lives or must be depreciated under the Alternative Depreciation System (ADS)
4. Understand the implications of the Interest Deduction Limitation 5. Understand how construction companies may leverage the TCJA