Cost Segregation for SFRs and rentals

[Joseph Martin]

Does anyone do cost segregation for SFRs and rental properties? I’m trying to learn how to do this, especially since I’m in the 37% tax bracket. Any advice and direction is greatly appreciated! Thanks!

[Yonah Weiss]

Originally posted by @Michael Plaks:

Let's just be clear about the meaning of "Audit guarantee." They can (and do) promise that they will represent you (for free) if the IRS decides to challenge their cost segregation numbers. However, they can't (and don't) promise that you will win such an audit, even with their support.

Just to be clear Michael, can anybody 'guarantee' winning an audit of any kind? I don't have much experience with audits, thank God! 

I think track record says it all. The truth is this DIY cost seg software is relatively new, and I would be curious to know if any studies using them have ever been challenged by an audit yet. Cost segregation by itself would not raise a red flag, obviously, so the only time it would be looked at is if the person was audited for another reason. The chances are so slim, that it's almost like a gamble.

I know in the 14,000+ studies my firm has done over the past 13 years only 12 times have our clients been audited and our studies have been looked at. We have 100% 'no-change' record, but my point is, the chances are so slim, it may just be worth taking the risk...