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

[Anna Greta Taylor]

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.

[Nathan Gesner]

Quote from @Anna Greta Taylor:

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.

DO NOT use Elite Tax Consulting! I used them last year. Things started well and they got me a $45,000 tax refund. However, their communication was awful. 

[Yonah Weiss]

Quote from @Nathan Gesner:

Quote from @Anna Greta Taylor:

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.

DO NOT use Elite Tax Consulting! I used them last year. Things started well and they got me a $45,000 tax refund. However, their communication was awful. 

 First I've heard of them Nathan. Looks like they're based in India.

[Nathan Gesner]

Quote from @Yonah Weiss:

Sorry, Elite Consulting, PC. They are in Illinois, headed by Telma Landhorian. Super nice, do a pretty good job with taxes, suck at communication.

After I fired them, I asked for a digital copy of my records to give to my new CPA. Telma told me it would cost $1,200. I paid her during that same conversation in August. She told me they would send the file right after the September 15 filing deadline. It took four months and a ton of emails and calls. When I finally told her I wanted a refund for lack of performance, she had the file to me within 24 hours!

[Owen Dashner]

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

[Andrew Simms]

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. 

[Yonah Weiss]

Sorry to hear about that @Nathan Gesner

Thank you for the kind words @Owen Dashner & @Andrew Simms!

[Marcus Auerbach]

Quote from @Anna Greta Taylor:

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.

 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.

[Yonah Weiss]

Quote from @Marcus Auerbach:

Quote from @Anna Greta Taylor:

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.

 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.

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.

[Basit Siddiqi]

Quote from @Anna Greta Taylor:

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.

 "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.

[Joel Case]

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

[Anna Greta Taylor]

OK thank you!

[Anna Greta Taylor]

Quote from @Basit Siddiqi:

Quote from @Anna Greta Taylor:

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.

 "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.

 Thank you

[Julio Gonzalez]

@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?

[Alberto Nikodimov]

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/