Maximize depreciation

If you own business property and are looking for new ways to improve cash flow, help has come from an unusual source. Relatively recent IRS rulings and court cases have opened a new vista for accelerating depreciation, thus paving the way for property owners to cut taxes and free up cash for money-making projects or investments.

Generally, businesses have been limited to depreciating commercial real estate over a lengthy 39-year period and residential property over a slightly shorter 27.5 year period. In appropriate circumstances, however, these time frames can be shortened with a cost segregation study.

A cost segregation study separates nonstructural personal property costs from structural real property costs, thereby facilitating depreciation of a business' personal property over a much shorter time period. As a result, more depreciation can be taken upfront. Cash flow is improved through tax deferral.

In addition, with the property reclassification of personal property, real estate taxes and insurance costs may be reduced. Cost segregation studies can be done for newly acquired, newly constructed properties and existing properties, or for buildings that are undergoing renovations or expansions.

-- Steve Ritmiller
sritmller@alpern.com
Alpern Rosenthal

Crackdown on Web use

Virtually all mid-size and large companies are cracking down on inappropriate use of the Internet during office hours. That's the conclusion of a recent study by the staffing company Robert Half Technology.

Of the 1,400 companies with 100 of more employees surveyed, 78 percent have either installed content-filters or instituted policies that detail allowable subject matter for surfing the Internet at the office.

When companies were asked why they monitored or limited their employee's use of the Internet, concerns for productivity came in third place.

Keeping employees from viewing inappropriate material and preventing virus attacks were the reasons most often cited by companies for intervening in Web use.

All companies, large and small, should have an Internet use policy to maintain productivity and protect against unlawful use of the Internet by employees. If an employee does something illegal using the Internet on a company computer and the company has no policy, it could be in for a large lawsuit.

As important as having an Internet use policy is to communicate it to employees on a regular basis and to enforce it consistently and fairly.

-- Ronald L. Hicks Jr.
Meyer Unkovic & Scott
rlh@muslaw.com