Looking for a referral for a CPA Firm to do a Cost Segregation Analysis

Columbus, Ohio
Tax, SDIRAs & Cost Segregation
3yFollow

Looking for a referral for a CPA Firm to do a Cost Segregation Analysis

Mike Zamolo
Member since 2022 · 4 posts · 5 votes

I'm looking for a firm in Columbus Ohio area that can assist me in a cost segregation study on my newly purchased investment property in Columbus. Would love to hear if anyone has had experience with one there and roughly how much they may cost.

4Reply
40 views

Most Popular Reply

Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
3y

@Mike Zamolo

It's not done by CPA firms, it's done by specialized cost segregation firm, such as those operated by @Bernard Reisz, @Yonah Weiss and @Julio Gonzalez.

What CPAs will do for you is determine whether cost segregation makes sense in your specific situation, as it not always does: https://www.biggerpockets.com/...

4Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Michael PlaksPro Member
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    3y

    @Mike Zamolo

    It's not done by CPA firms, it's done by specialized cost segregation firm, such as those operated by @Bernard Reisz, @Yonah Weiss and @Julio Gonzalez.

    What CPAs will do for you is determine whether cost segregation makes sense in your specific situation, as it not always does: https://www.biggerpockets.com/...

    4Reply
  • Yonah WeissPro Member
    Cost Segregation Expert and Investor · Lakewood, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    3y

    Thanks for the mention @Michael Plaks!

    @Mike Zamolo, as Michael mentioned, make sure it is going to be good for your specific scenario. Most cost seg firms work nationwide, and fees vary based on the size and type of property.

     DMs are open. Happy to help.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Mike Zamolo:

    I'm looking for a firm in Columbus Ohio area that can assist me in a cost segregation study on my newly purchased investment property in Columbus. Would love to hear if anyone has had experience with one there and roughly how much they may cost.


     I can send you some referrals!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    Most cost segregation anaylsis firms will provide an 'estimate' of what the results of the study would be.

    I would have a discussion with your CPA whether you should get and pay for a study as you don't want to pay for something that won't provide a benefit.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Mike Zamolo:

    I'm looking for a firm in Columbus Ohio area that can assist me in a cost segregation study on my newly purchased investment property in Columbus. Would love to hear if anyone has had experience with one there and roughly how much they may cost.

    Hi Mike, I have worked with a lot of great cost segregation firms that charge reasonable rates and provide excellent service, and I would love to recommend them to you. As an investor and agent here in Columbus Ohio, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    2Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    3y

    @Michael Plaks Thanks for the mention!

    @Mike Zamolo Here's an article on what to expect when obtaining and cost segregation study.

    https://www.biggerpockets.com/...

    561-253-6640
    2Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    3y
    Quote from @Mike Zamolo:

    I'm looking for a firm in Columbus Ohio area that can assist me in a cost segregation study on my newly purchased investment property in Columbus. Would love to hear if anyone has had experience with one there and roughly how much they may cost.


     I can send some referrals 

    1Reply
  • Bernard ReiszPro Member
    CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg · New York City, NY · Member since 2017 · 581 posts · 563 votes
    3y

    @Michael Plaks Honored, as always, to be short-listed in such great company!

    @Mike Zamolo Michael Plaks' comprehensive posts on this topic (and every other real estate tax topic) are truly required reading. I confess to using content from his posts to enhance my own.

    As you explore Cost Seg, the following should be helpful to you.



    How to interpret a Cost Seg Feasibility Study and Cost Seg Report

    A Cost Segregation Feasibility analysis can be a pretty "noisy" document, so you need to know how to cut through the noisiness to focus on what actually matters.

    Your actual ROI on a Cost Seg Study may be HIGHER or LOWER than illustrated on a Cost Seg report.

    What is the "bottom line" on a Cost Seg report? 🤷‍♀️

    Typically, a Cost Seg report provides either an estimated "net tax benefit" or "net financial benefit" number.

    ▶️ Net Tax Benefit = (Additional Deprecation Deductions Generated by Cost Seg - Depreciation Deductions w/o Cost Seg) x Marginal Tax Rate

    ▶️ Net Financial Benefit = Net Tax Benefit x Time Value of Money

    Why does the bottom line NOT count? 🤷‍♀️

    The actual tax and financial benefit you get from doing a Cost Seg depends on a number of factors that are outside the scope of cost seg cost allocation and asset classification:

    👉 What portion of the purchase price gets allocated to land? (IRS actually says that this is a key component of a Cost Seg study!)

    👉 What portion of the acquisition costs are allocated to improvement basis (as opposed to being currently deductible or are amortizable finance costs)?

    👉 What's your marginal federal income tax rate?

    👉 What's the applicable state income tax rate?

    👉 Does the applicable state conform to Federal Bonus Depreciation rules?

    👉 What is the time-value of money to you?

    👉 What additional tax and financial incentives might you qualify for by reducing your taxable income?

    The bottom-line tax or financial benefit reported on a Cost Seg feasibility analysis necessarily incorporates ASSUMPTIONS regarding all the foregoing.

    However, those assumptions certainly do not fully conform to your personal tax and financial reality.

    Assumptions are necessary evil (to some extent; some Cost Seg reports are more liberal in their use of assumptions than others), but you've got to know what they are so that you can adjust the "bottom line" to your personal reality.

    So, what does matter in a Cost Seg analysis? 🤷‍♀️

    👉 The percentage of depreciable basis allocated to short-life assets.

    That's it!

    The foregoing highlights why having a great tax advisor is so important, and why we prefer working with real estate investors that are well advised by their tax pros! (As a CPA, I may be biased towards tax advisors!😊) 

    [email protected]
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free