top of page
Calculator

Pass Through Tax Benefits

Deductions and expenses generated by pass through entities

Private placement (or non-public offering) are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.

Generally, these investors include friends and family, accredited investors, and institutional investors who participate in a partnership or limited liability corporation (LLC) structure.

Blue Light

Investing in Private Offerings that involve direct ownership of real estate and/or equipment can provide pass through tax benefits

Depreciation

Depreciation is a method used to allocate the cost of tangible assets or fixed assets over the assets' useful life.  It allocates a portion of the cost to periods in which the tangible assets helped generate revenues or sales.

The decrease in the value of an asset or assets, through depreciation reduces the amount of taxes a company or business pays via tax deductions.

Image by Teté Gallardo Batista

Accelerated Depreciation

A method whereby an asset loses book value at a faster rate than the straight-line method.  Generally, this method allows greater deductions in the earlier years of an asset and is used to minimize taxable income.

Blue Light

Real Property

The general recovery period for nonresidential real property is 39 years and residential rental property is 27.5 years.

Section 179 Expenses

A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service.  Section 179 covers almost all types of “business equipment” that a company buys or finances.

Cost Segregation

The process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes.

This allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.  Real estate investors will receive immediate expensing of certain 5, 7 and 15 year property.

Schedule a Meeting
to Review
Pass Through Deductions

Return to
Income Main Menu

Return to
Education Main Menu

bottom of page