All Forum Posts by: Julio Gonzalez

I'm curious how many of you are utilizing 5G!

I'm happy to walk through any cost seg opportunities if anyone needs it! 

Absolutely there are some advantages to doing a cost seg now. Well said, Tyler!

Hi Isiah, are you still looking for a CPA? I would be happy to see what CPAs we work with in Kansas City. 

Don't forget about cost segregation and the tax benefits available to you if you are to have one performed! 

Did you know that you can increase your cash flow simply by utilizing accelerated depreciation of your real estate property? By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow. In order to determine if your property is eligible and ensure your assets are assigned to their respective recovery periods, a cost segregation study is needed.

A cost segregation study is a strategic tax planning tool that separates the assets that have a shorter useful life and can be depreciated over 5, 7 and 15 years from the residential rental property or nonresidential real property that are depreciated over 27.5 and 39 years, respectively. This is done using MACRS (Modified Accelerated Cost Recovery System).

The IRS determines the useful life also known as the recovery period. Here are some examples of the recovery periods from the IRS 996 Publication:

• 5-year Property: Automobiles, qualified technological equipment, office equipment (copiers, calculators, etc.), appliances, carpet, and furniture used for residential real estate.
• 7-year Property: Office furniture and fixtures (desks, filing cabinets, safes)
• 15-year Property: Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges)

There are multiple approaches to cost segregation studies including the Detailed Cost Approach, Detailed Cost Estimate Approach, Survey Approach, Residual Estimation Approach and Sampling Approach.

If you feel like you or your business could benefit from a cost segregation study, first speak with your accountant to see if the tax savings outweigh the potential costs. If you determine that a cost segregation study is beneficial to your business, ensure you work with a qualified professional that conducts the study in accordance with the IRS standards and audit techniques.

What are your favorite tax savings strategies?

I am sure your event will be great, @Josh Macallister! Thanks for sharing this information with us.

You might find this article answers some of your questions: 

Rooftop Leases And 5G: A New Way To Generate Cash With Your Real Estate Holdings via @forbes https://www.forbes.com/sites/forbesfinancecouncil/2020/10/28/rooftop-leases-and-5g-a-new-way-to-generate-cash-with-your-real-estate-holdings/

 

Our firm manages a lot of 5G rooftop leases and would be glad to discuss the process with you anytime. Please don't hesitate to reach out if we can assist.

Many commercial real estate property owners have experienced decreased revenues as a result of COVID-19. As businesses are unable to pay their rent or are moving in the direction of working from home, how can these property owners offset that loss of income and increase cash flow? The answer is…. 5G Rooftop leases!

5G Technology is expanding and wireless carriers are looking for rooftops to lease out as they need to have transmitters placed every few blocks rather than the previously used large towers that serviced a big area. This is largely due to the fact that 5G has shorter wavelengths and higher frequency than earlier technologies - i.e. the signal doesn’t travel very far and obstructions can easily block the signal. This is great news for commercial real estate property owners!

Currently, AT&T, Verizon, T-Mobile, Sprint and Dish all have 5G licenses. The leases are between the landlord and the telecom provider and typically have a 10-30 year term. Additionally, landlords aren’t limited to leasing with only one carrier. As long as the landlord is able to obtain non-exclusive leases, they can have separate leases and generate essentially passive income from multiple carriers on one single rooftop.

If you’re looking for the hottest markets, Dish is building their network from scratch and has committed to having 10,000 5G sites by the end of 2022 with their top four markets being:

• Denver, Colorado
• Las Vegas, Nevada
• Cleveland, Ohio
• Atlanta, Georgia

Are you or your company utilizing 5G Technology to maximize your rental income?