Category: Real Estate & Construction

Accounting for Business

Welcome to our Resources section, where you will find articles pertaining to accounting for business, business financial planning, financial advice, and the industries of our clients. This section is a great source of information, but please contact us if you feel you need professional financial advice. Maxwell Locke & Ritter is here to offer trusted guidance.


Several positive changes were made to the federal income tax depreciation rules because of the Tax Cuts and Job Acts (TCJA). The following information is provided to assist investors with their real estate accounting, to help them understand the resulting real estate tax breaks, and to keep them from any unforeseen pitfalls.

There are real estate tax opportunities that companies can leverage throughout the year to address acute business needs without jeopardizing future finances. For example, if you liquidated office space or other building assets, your business may be eligible for these tax benefits.

Your commercial property tax bill may be higher than it should be. A little bit of scrutiny can go a long way in reducing your expenses. While rising property taxes may be occurring simply because your local government needs more funding for communal needs like roads or schools, there are some steps you can take to ensure that you’re paying the lowest possible rate.

Builder’s risk insurance ensures that the insurance company will cover any equipment, materials, or property, damaged during construction, but there is a limit to this. For example, the loss must be clearly specified and included under what the insurance company considers to be “covered property”.

When was the last time you reviewed the insurance coverage on your business property? If you have an insurance agent who works closely with your company, you may be accustomed to periodic reviews to keep your insurance up to date.

Do you own residential or commercial rental real estate? The Tax Cuts and Jobs Act (TCJA) brings several important changes that owners of rental properties should understand.

The IRS has turned up the heat on the use of cost segregation studies by building owners. Auditors have a special guide to help assist them in examining the returns of taxpayers who utilize cost segregation studies.

If you own raw land as an investor, you can cash in on a tax break under Section 1237 of the tax code by subdividing the tract and selling off in smaller parcels.

Let’s say you buy a vacation home and decide to rent the place. You incur a $4,500 loss for the year. You may think: What could be simpler than claiming this loss on my tax return?

When natural disasters strike, it highlights the need for businesses to review their insurance policies. Your business could become a victim of Mother Nature, or any other catastrophe, without warning.