New Orleans, LA · Member since 2014 · 56 posts · 25 votes
Hey guys
As most of you know by now, there is a STR loophole that lets STR owners get huge tax savings via bonus depreciation.
Keep in mind that most accountants are not familiar with this. The ones who are find themselves in high demand, and they charge based on that demand. It is getting tough to find one who charges less than $2,500 for advice (yearly retainer fee essentially). Then you still have to pay them to file your taxes.
For example: Ryan Bakke is a pioneer on this and he’s up to charging $5k just to let you in his door on the issue. It’s great for him, and that is the market. Others are similar. I went with someone not quite as expensive. This is not a criticism of him or mine! But you will have to budget more than you realize to take advantage of cost segregation studies while utilizing the STT loophole.
Not sure why the Smokys folks are acting like I bashed Ryan Bakke. I think he’s great too, so if somehow my post appeared to be about him, then my bad.
My point is that every real estate cpa is super expensive now. They are a hot commodity and there is a market for that niche, especially with STRs. It’s a major cost that people need to be aware of if they go down this route.
@Andre M. Cost segregation studies can benefit real estate investors tremendously on many types of properties (commercial buildings, apartment complexes, car dealerships, self-storage, SFH, restaurants, industrial buildings, etc. etc.). It can be a huge benefit for STR investors if you don't have REPS status and are able to qualify for active participation (I'm assuming this is the loophole you are referring to!). Glad you found it to be so beneficial! Thanks for sharing.
@David Chappell We provide specialty tax services including cost segregation studies. If you're needing a CPA, I've worked with many great ones over the years and would be more than happy to provide you with a few recommendations.
@David Chappell We provide specialty tax services including cost segregation studies. If you're needing a CPA, I've worked with many great ones over the years and would be more than happy to provide you with a few recommendations.
I will send you a PM to connect further, thank you Julio.
I would actually recommend not going with LearnLikeaCPA/Ryan Bakke. I filed with them and also joined their Tax365 "guru" class. It was an overpriced service with slow responses that ultimately underdelivered. Not to mention the filing was done incorrectly and I got a subsequent bill from the IRS $1500 that I didn't actually owe. Bakke seems like a good option on the social pages, but i wish I'd steered clear. His focus on his variety of side hustles takes attention off the client. Do yourself a favor and go with anyone but.