Rec on who to get for Cost Segregation Studies for STR?

Question

I am a new STR investor and am looking to get cost segregation studies on the 2 STRs I purchased in 2022, with the hope of using them for bonus depreciation against my W-2 income. Any recommendations on who to go with? Purchase prices were $1.2M and $715k.

Joel Case · Answer

When I spoke to my CPA he pointed me to @Yonah Weiss as well.

Yonah Weiss · Answer

I'm not a CPA, but I'll check you :)

There are some different rules specifically with regards to Short Term Rentals. You do not need to have REPS, as long as the average stay is less than 7 days, and you materially participate in the running of the rental. Either 100+ hours and more time than any other individual, or 500 hours per year.

Owen Dashner · Answer

I would recommend Yonah Weiss at Madison Specs, they have done cost segs for me and other investors I know.

Andrew Simms · Answer

Recommendation for @Yonah Weiss - I did a consultation but our property value was much less than you are looking at, so the cost didn't really make sense. However, his preliminary report and consultation was professional and very much appreciated.

Anna Greta Taylor · Answer

OK thank you!

Marcus Auerbach · Answer

Some CPA check me on this, but I believe that you can't write them off against your W2 unless you (and spouse) qualify for real estate professional status. Look into KBKG for cost seg, they also have an online calculator, but a full manual study is far better.

Basit Siddiqi · Answer

"with the hope of using them for bonus depreciation against my W-2 Income."Don't hope, speak with an accountant before you get the cost segregation.You don't want to spend thousands on a cost segregation that may potentially not help you.Best of luck.

Alberto Nikodimov · Answer

Hi Anna! I have a great company I've been working with. They are very knowledgeable, and they just specialize in cost segmentation for STR. I highly recommend: https://gfgsolutions.com/

Julio Gonzalez · Answer

@Anna Greta Taylor Cost segregation and bonus depreciation can be an excellent tax strategy! If you haven't already, I'd recommend getting cost segregation study quotes from multiple companies and then taking those quotes back to your CPA to discuss if you would be able to benefit from the study. I find it easier to have the numbers in hand when discussing rather than just discussing hypotheticals. Do you qualify as actively participating in your STRs?

Rec on who to get for Cost Segregation Studies for STR?

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