need lender who understands cost segregation on taxes

Investor · Prospect, KY · Member since 2017 · 62 posts · 34 votes

We are trying to buy a short term rental, and need a good lender. The lender needs to understand cost segregations / accelerated depreciation on our tax returns. I appreciate your help! Steve

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Henry ClarkPro Member

Developer · Member since 2020 · 4k+ posts · 4k+ votes

Not an issue:

1. They should only be worried about NOI or above line

2. Tell them your year 1 depreciation write offs and they will understand. All 4 of my bankers understand. Not an issue.

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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
Not an issue:
1. They should only be worried about NOI or above line
2. Tell them your year 1 depreciation write offs and they will understand. All 4 of my bankers understand. Not an issue.
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Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
@Steve Armstrong

@Henry Clark Is correct. That's one of the many beauties of depreciation. As far as the Loan Officer is concerned, it gets added back to your income and does not negatively affect DTI.
[email protected]818-606-8823
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
3y
It is very standard for lenders to add back non-cash expenses(Depreciation / Amortization) or one time expenses.
[email protected]917-280-8544
Basit Siddiqi CPA4.979 Reviews
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