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Questions and Answers
Which of the following is a benefit of cost segregation?
Which of the following is a benefit of cost segregation?
- Allocates depreciable basis into shorter recovery time periods (correct)
- Increases annual tax liability
- Triggers an examination
- Reduces cash flow
What can a taxpayer do to deduct the 'catch-up' depreciation in the year of change?
What can a taxpayer do to deduct the 'catch-up' depreciation in the year of change?
- File a Form 3115 (correct)
- Trigger an examination
- File a timely return with extensions
- Request automatic consent
According to the IRS, is the use of a cost segregation study a red flag for triggering an examination?
According to the IRS, is the use of a cost segregation study a red flag for triggering an examination?
- It depends on the situation
- Yes
- The text does not mention this
- No (correct)
What is the purpose of a Form 3115?
What is the purpose of a Form 3115?
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What does cost segregation mean in terms of cash flow?
What does cost segregation mean in terms of cash flow?
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