All Forum Posts by: Malik Javed

Well said @Melanie Baldridge

@David Sam  Congratulations, David! Here is a recent post of mine that addresses your questions:

Cost Segregation - The Basics (biggerpockets.com)

You don’t need to complete it before the end of the year to use it for your 2024 taxes. It can be finalized any time before your tax deadline in April 2025. For residential properties with a basis of less than $1.2 million, check out our online DIY Residential Cost Segregator. Be sure to consult with your CPA to determine if you can utilize these deductions based on your specific tax situation.

@Josh Horst   We created KBKG's Residential Cost Segregator software and has maintained a 100% IRS audit success rate since we launched the software in 2016.  All of our DIY reports come with free audit support.  I can confidently say that we have gone through several IRS audits without any changes to our KBKG Residential Cost Segregator reports. When the IRS audits us, it helps that we have more Certified Cost Segregation Professionals (CCSP's) than any other company in the country.  Here is my post on Cost Segregation Basics:   Cost Segregation - The Basics

I recommend working with a knowledgeable CPA to help you take full advantage of these deductions based on your tax situation. This forum has many skilled CPAs. Feel free to message me privately if you’d like recommendations.

@David Thomas Wells - Welcome to BiggerPockets! You’re in good company with some pretty knowledgeable people. If you’ve got any questions, just ask – we’re here to help!

You're definitely in the right place.  Begin by having a conversation with your accountant first about 1031 exchanges.  And there are many of us here with different insights on different topics.  Feel free to reach out if I can help you answer any of your questions. 

Cost Segregation is a great tax planning tool. I definitely recommend that you seek out a Certified Cost Segregation Professional so that you are confident in the quality of the work performed and the deliverables produced. Here are some key criteria for evaluating a Cost Segregation provider:

- Seek out a Certified Cost Segregation Professional

- Consider their experience with tangible property regulations. Will they be prepared to address retirements and disposition? Repairs vs. capital expenditures.

- Find out how long the provider has been doing cost segregation studies and how many they have performed

- Consider the resources available to the provider. Are they a nationwide firm? Do they have the necessary resources to stay on top of all the tax issues such as 1031 exchanges, 754 Step-Ups, etc.

Feel free to send me a private message if you have any questions here.

A couple articles you can read that will be helpful:

https://www.biggerpockets.com/forums/51/topics/1206189-cost-...

https://www.biggerpockets.com/forums/51/topics/1204912-how-t...

Cost Segregation is a great tax planning tool. I definitely recommend that you seek out a Certified Cost Segregation Professional so that you are confident in the quality of the work performed and the deliverables produced. Here are some key criteria for evaluating a Cost Segregation provider:

- Seek out a Certified Cost Segregation Professional

- Consider their experience with tangible property regulations. Will they be prepared to address retirements and disposition? Repairs vs. capital expenditures.

- Find out how long the provider has been doing cost segregation studies and how many they have performed

- Consider the resources available to the provider. Are they a nationwide firm? Do they have the necessary resources to stay on top of all the tax issues such as 1031 exchanges, 754 Step-Ups, etc.

Feel free to send me a private message if you have any questions here.

A couple articles you can read that will be helpful:

https://www.biggerpockets.com/forums/51/topics/1206189-cost-...

https://www.biggerpockets.com/forums/51/topics/1204912-how-t...

Thank you @Costin I.

@Bob Dole - When considering a Cost Segregation study, here are a few things to consider:

https://www.biggerpockets.com/forums/51/topics/1206189-cost-...

Feel free to reach out with questions!

There’s definitely a short-tax year here for the building basis. Bonus depreciation isn’t prorated due to the short-tax year. However, the personal property assets such as 5 and 15-year may be using the “mid-quarter” convention instead of the normal half-year convention.

Don't forget, STR's have a depreciable life of 39-years instead of 27.5-years.

@Sandeep K Mamidi - Welcome to one of the most insightful group of people around!