DIY Cost Segregation Study Tips/Tools/Templates?

[Karen Chenaille]

Greetings BP'ers...

As part of a 1031 exchange, I have purchased a handful of short term rental properties in the last few mos.  I have about 1 week left on my initial 45 day period to put properties under contract to avoid the tax implications from my sale of the commercial real estate.  There is a real  likelihood that I won't find another property that I feel is worth buying in the next week or so.

I am planning to perform a cost segregation study on the STR's I have purchased to take advantage of the bonus depreciation rules currently in effect to offset the tax consequences of leaving some $$ on the table coming out of my 1031 exchange. I could hire a firm to do this, but they run at around $5K on the low end. I don't think the complexity of what I need to analyze really requires that level of horse-power. I am looking to perform this myself.

Has anyone out there ever taken the DIY approach? Do you have any examples and spreadsheets you could share?

Thanks in advance!

Karen

[Costin I.]

@Paul Caputo While I don't disagree with your points, at the same it doesn't make you an uninterested party in evaluating KBKG calculator. Given the difference from your $2,500 to theirs $400, that 5%-10% understating makes it good enough in my book for an average SFR.

But I wouldn't worry too much, I doubt you are capturing that many SFR investors to do Cost Seg studies for them for $2500 a piece. KBKG found a way to serve an underserved market. Especially when we are talking only acceleration of depreciation, not actual savings - that $2,100 cost difference can be a big one for the small investor.