Poconnor Articles

1). Appealing your Texas Property Taxes - The Basics By : Patrick OConnor
Property taxes are a substantial expense for Texas homeowners, averaging about $3,600 annually. To reduce this expense, property owners should annually review and consider appealing property taxes. While there is no guarantee that an appeal will be successful, a recent survey conducted by O'Connor & Associates indicates that 70% of property tax appeals are successful.
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2). Cost Segregation - Why isn't my CPA already doing this? By : Patrick OConnor, MAI
Most commercial property owners, even those who use professional accountants, fail to take advantage of cost segregation, a tax mechanism that could generate substantial savings in federal income taxes. While most accountants are familiar with the approach, some are hesitant to recommend it without a documented analysis of correct depreciation amounts.
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3). Appealing Business Personal Property Tax Assessments in Texas By : Patrick OConnor, MAI
"Collecting more taxes than is necessary is legalized robbery." These words of wisdom, spoken by the 13th president of the United States, Calvin Coolidge, still ring true in today's society for homeowners and business owners. Robbery may seem like a harsh word, but what would you say if someone tried to sell you one-year-old motel sheets for 90% of the original cost? Based on the appraisal district's depreciation schedule, this is a fair deal.
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4). Appraisers lower costs for federal tax savings on small property depreciation By : Patrick OConnor, MAI
Tax savings through cost segregation is no longer out of reach for investors in small and medium size properties. With appraiser expertise, fees for analysis are often one-third to one-half lower than those charged by traditional preparers. Several years ago a definitive court case ruled that tangible personal property included in an acquisition or in overall costs should be depreciated as personal property for asset recovery, using the old Investment Tax Credit principles to classify personal property.
Article Related to: cost segregation, lower federal income tax, commercial real estate, poconnor

5). Summary Regulatory History of Cost Segregation By : Patrick OConnor, MAI
BACKGROUND In order to calculate depreciation for Federal income tax purposes, taxpayers must use the correct method and proper recovery period for each asset or property owned. Property often consists of numerous asset types with different recovery periods, which must be separated into individual components or asset groups having the same recovery periods and placed-in-service dates.
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6). Texas Apartment Market By : Patrick OConnor, MAI
All Texas metro markets report current overall occupancies above 90%, with Austin leading the market at 93.39%. The lowest occupancy is found in the Dallas/Fort Worth market at 90.35%. Austin also leads the Texas markets in terms of rental rates, reporting the highest rents at $0.930 per square foot (psf). Average rents in the other metro markets are all below $0.
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7). Valuation of Business Personal Property (BPP) By : Patrick OConnor, MAI
The huge range of assessed value for business personal property (BPP) makes obtaining substantial property tax reductions highly probable. It is not unusual for the range of assessed value for BPP accounts for similar properties to vary by 5,000%! For example, furniture and computers for companies within the same office building sometimes vary from $1 to $50 per square foot.
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8). Texas Apartment Market Update � May 2006 By : Patrick OConnor, MAI
Although all major Texas markets posted decreases in average occupancy in May, occupancy remains above 90% in all four, with Austin recording the highest at 93.02%. The lowest occupancy was found in Dallas/Fort Worth at 90.18%. Austin has the highest average rent per square foot as well, at $0.931 per square foot (psf); Dallas/Fort Worth posted the second highest at $0.
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9). Tax Relief for Apartment Owners By : Patrick OConnor
Apartment owners can face staggering expenses to maintain apartment communities. The upkeep of even a modest community could involve groundskeeping, unit renovation, and replacements, such as parking lot asphalt and fencing. Another steep expense is federal income tax - and in some areas an additional state tax on income - but through an innovative study known as cost segregation, the depreciation of property components can be used to help lower federal taxes.
Article Related to: cost segregation, federal income tax, commercial investors, poconnor

10). Appealing Property Taxes for Apartment Owners By : Patrick OConnor, MAI
Property taxes are one of the largest line item costs incurred by apartment owners. However, many owners do not appeal effectively. Even though owners realize that property taxes can be managed and reduced through an appeal, some view taxes as an arbitrary estimate provided by the government which can't effectively be appealed. It tends to boil down to the old adage, "You can't fight city hall".
Article Related to: property tax, texas, appeal, poconnor