Bonus Depreciation Expense Allowance Tax-Advantaged Syndication Transactions

The bonus depreciation expense allowance is:

  • Not a tax credit; it's an offset to passive income.
  • Not fully fungible as a tax credit; only a portion of the total eligible basis would be economically useful to an investor.
  • Not limited to being claimed for the year the asset is placed in service; it has a 5-year look-back and 10-year carry-forward provision.
  • Fungible in cases where the eligible basis is large enough to be materially significant to the business.
  • Not subject to recapture in the way a tax credit is; it is recaptured upon sale of the asset.
  • An ideal tool for commercial real estate developers - especially multifamily housing and senior housing owner/operators to gain capital investment without necessarily having to accept a massive equity security ownership dilution.

In creating your own approach to pricing the value of the bonus depreciation expense allowance, be advised that significant legal issues are in play with respect to the changes to the tax code that must not be lightly set aside.  An opinion letter from tax counsel will be a fundamental requirement.  Contact Rainmaker to find out more about this important financing tool's applicability to your particular project.

Company Profile

Rainmaker Marketing Corporation is a consulting firm that focuses on providing the due diligence services on a business to business (B2B) basis.  Rainmaker Marketing Corporation can trace its roots back to the late '80's and was formerly incorporated in 1994.

Over the years, Rainmaker Marketing Corporation consultants have completed hundreds of assignments across the United States (43 states) and offshore.  The completion of RMC's work directly lead to over $1.5 billion in successful project outcomes.

Take a few minutes and learn more about RMC.  This website is designed to provide a wealth of planning information pertaining to the capitalization, operations, and organizational program tenets today's savvy entrepreneurial company must embrace for continued growth and success...

Contact Information

Our business hours are from 9:00 a.m. to 5:00 p.m. Monday thru Friday (CST)

Telephone:

281-537-1200

Postal address:

15519 Dawnbrook Drive, Houston, Texas 77068

Electronic mail:

General Information & Consulting Queries: clint@rainmakermarketing.com 

Copyright © 2004 - 2008 Rainmaker Marketing Corporation.  All rights reserved.