Comments on: Apartment Building Cost Segregation Analysis http://www.biggerpockets.com/renewsblog/2008/07/15/apartment-building-cost-segregation-analysis/ Learn, Network, Invest Sun, 22 Nov 2009 23:13:19 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Sharon Clay http://www.biggerpockets.com/renewsblog/2008/07/15/apartment-building-cost-segregation-analysis/comment-page-1/#comment-60102 Sharon Clay Sun, 21 Sep 2008 00:48:13 +0000 http://www.biggerpockets.com/renewsblog/?p=1107#comment-60102 Most CPA's are not qualified to do cost segregation studies and have to obtain the services of a qualified engineer (required by IRS), which many do not have access to. Most CPA's and Tax professional also feel that doing cost segregation studies on projects this small, will not bring much of a return. This is the reason engineering companies will only take on larger projects. Be cautious about companies that say they can do a property study for $650 for a project this small, you just may be throwing away money. Something you may consider is consulting a company that actually has a business and tax law consultant (attorney), before choosing a company to do a study on a project this small. If they are a reputable company they should offer you a free consultation before you spend any money upfront, in order to determine the approximate dollar amount of your cost segregation refund. Most CPA’s are not qualified to do cost segregation studies and have to obtain the services of a qualified engineer (required by IRS), which many do not have access to.

Most CPA’s and Tax professional also feel that doing cost segregation studies on projects this small, will not bring much of a return. This is the reason engineering companies will only take on larger projects. Be cautious about companies that say they can do a property study for $650 for a project this small, you just may be throwing away money. Something you may consider is consulting a company that actually has a business and tax law consultant (attorney), before choosing a company to do a study on a project this small. If they are a reputable company they should offer you a free consultation before you spend any money upfront, in order to determine the approximate dollar amount of your cost segregation refund.

]]> By: Tim Hawkins http://www.biggerpockets.com/renewsblog/2008/07/15/apartment-building-cost-segregation-analysis/comment-page-1/#comment-58420 Tim Hawkins Wed, 16 Jul 2008 02:21:45 +0000 http://www.biggerpockets.com/renewsblog/?p=1107#comment-58420 Ted, good article -- but I believe your statement "Do you own a commercial property valued at $500,000 or more?" was far too limiting. We've found two companies that can do the job on Single Family Residences costing $160,000 for as little as $650. At this level the work easily pays for itself (at least on GO zone properties). While in general I found most Chattel Analysis companies will only work on "large" projects, some in fact do handle smaller properties. There are quite a few good articles out there on the net... Ted, good article — but I believe your statement “Do you own a commercial property valued at $500,000 or more?” was far too limiting. We’ve found two companies that can do the job on Single Family Residences costing $160,000 for as little as $650. At this level the work easily pays for itself (at least on GO zone properties). While in general I found most Chattel Analysis companies will only work on “large” projects, some in fact do handle smaller properties. There are quite a few good articles out there on the net…

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