Cost Segregation Companies ~Any suggestions?

Question

Good or bad experiences? Home is in Temecula, CA. Purchase price 545K, new paint floors and fixtures, appraised at 825K. Also outfitting with furniture and fixings as a Midterm rental. Will this completely erase my obligation to collect and hold and itemize all my renovation receipts and let the cost seg do it once and for all? I have REPS status, no W2,but I am an independent contractor part time and make 70K year passive income (alimony) that I pay taxes on as well as another rental that grosses 36K and about 40K gross as a gig worker(non passive). My AGI comes out to 51K. I'm assuming this carries over.

I received a quote for $3650 out the door using engineers and guaranteed Audit defense. Anyone use CostSegAuthority.com? Thanks for your input!

I received a quote for $3650 out the door using engineers and guaranteed Audit defense. Anyone use CostSegAuthority.com?  Thanks for your input!

Ashish Acharya · Answer

@Yonah Weiss can help you.

Yonah Weiss · Answer

Thanks for the mention @Ashish Acharya.

@Amy Konopka, if you have REPS, the depreciation from the cost seg will likely wipe out your taxable income this year, and any extra losses will carry forward.

To answer your question about holding receipts, the cost seg engineer report will itemize all of the components of the property from the acquisition. Any extra furniture and fixtures added afterwards can usually be separately depreciated, so it would be worthwhile to hold on to those receipts.

I cannot comment on the other company though 😉