Reclassification of Assets and Accelerated Depreciation
By Marky Moore Founder, Capital Review Group | May 20, 2012
An East Coast hotel had some choices to make. The owners of the hotel saw it growing and prospering and the ability to funnel cash back into the hotel as well as generate some real income was there, but there was also a good friend knocking at the proverbial door: the IRS. The IRS, of course, wanted their piece of the success and the hotel and its owners wanted to share, just not the amount that the IRS was asking for.
Continuing to provide the best rooms and amenities in their segment of the hotel market.
Eliminating tax burden and ensuring the short-term and long-term growth of the hotel and the personal portfolios of the owners.
Utilizing tax opportunities through the assets that are currently owned without having to spend a huge part of excess cash on additional assets.