Cost segregation study on Residential condo rentals?

[Amer Nassar]

Hi all,

Does anyone have any experience using companies like KBKG who offer cost segregator calculators and algorithm to determine condo cost segregation from empirical data? Are these reliable and more importantly safe methods to use for accelerated deductions?

Would much appreciate an experienced response!

Best,
Amer

[Bonnie Griffin Kaake]

@Amer Nassar Think about it this way...CPAs and tax professionals rarely, if ever, do cost segregation studies for clients. It is a specialty area of tax law, very complex and calculation intensive. It takes an engineer and a person well-versed in construction and real estate tax law to do it right. The difference in cost to do a study is insignificant if you compare it to the cost of an audit. 

The more you know or learn about real estate, the more you realize you need an expert team to help you through the process. It is common knowledge in RE that no two properties anywhere are alike.