Cost segregation study
Hi, I'm a real estate investor in New York and I'm looking to do cost segregation on my properties.
does anyone know how can I do it myself and if is there any app that walk through the steps of the cost segregation study?
thank you
@Gabriel Litvack Cost segregation studies are not DIY projects unless you like spending time with IRS auditors. ;-) The IRS' preferred methodology for a cost seg study is engineering-based. This requires someone experienced in engineering, construction and accounting. It also requires an on-site property review inside and outside by a professional. The difference in cost between a rule-of-thumb approach or "desk-top" study is simply not worth the risk and rarely gets you the same amount of tax benefits.
Quote from @Gabriel Litvack:
Hi, I'm a real estate investor in New York and I'm looking to do cost segregation on my properties.
does anyone know how can I do it myself and if is there any app that walk through the steps of the cost segregation study?
thank you
Some tools allow you to do a Cost Seg study using a DIY tool if your property has a low enough cost basis. Anything over $500,000 would benefit from a full study, but I'd recommend you consult your CPA and check out a couple of options. Two providers with both full studies and DIY options are KBKG and ELB Cost Seg. Good luck!
I second what Bonnie said. I strongly recommend working with a good firm, so you're protected and can ensure it's done right. I have a post here about what to consider when looking for a cost seg firm - Cost Segregation - what to consider when looking for a firm?
Here are also some Cost Segregation FAQ to consider.
If you have any questions, don't hesitate to ask!
- Engineered Tax Services
- (561) 253-6640
- http://www.Engineeredtaxservices.com
Hey @Gabriel Litvack - trying to do a cost segregation study through a DIY-app is not the best approach, and I don't think an app exists for something like that (could be wrong).
As @Bonnie Griffin Kaake mentioned - best to hire a professional and if you use a CPA for your real estate needs, they will likely be able to recommend someone local to you.
-
Broker New York (#10401359681)
- 929-349-8042
- http://www.ClosedByMo.com
- [email protected]
Thank you for you advice!
Thank you! I'll consider hiring a professional
Quote from @Gabriel Litvack:You may find the better cost segregation firms that have more experience and do engineering-based studies are not based in your state. Local is not always the best. Get quotes for quality engineering-based studies and decide by what they are offering you other than lowest price. Would you want to buy a car based on the lowest price? How about flying in a plane that was built by the lowest bidder?
Hi, I'm a real estate investor in New York and I'm looking to do cost segregation on my properties.
does anyone know how can I do it myself and if is there any app that walk through the steps of the cost segregation study?
thank you
- Accountant
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Cost segregation studies normally need to be done by an engineering firm.
I would recommend reaching out to your accountant to see if they have any recommendations.
Best of luck!
-
CPA
- Basit Siddiqi CPA, PLLC
- 917-280-8544
- http://www.basitsiddiqi.com
- [email protected]