All Forum Posts by: Sean O'Keefe

@Henry T Did you exceed 14 days of personal use for this STR? This generally the case when you're personal use of the STR is 15 days or more.

To meet the IRS requirements for STR the number of personal use days is limited. 

I don't think the location of a CPA necessarily matters. Having a strong background in Real Estate is what's important. You may find a few great CPAs commenting in the forum here answering questions. 

@Guillermo Rivacoba If you purchased the property in 2023 and “place it in service” in 2023 (this is when you make it ready and available to rent, not necessarily when you have tenants) then there is still time. Should you do a cost seg is a completely different question.

To do a cost seg. or not depends on a few factors including, but not limited to:

• What you are hoping to get out of it (e.g. offset other income in the portfolio, get a big refund to put down on another property)
• How long do you plan to hold the property (depreciation recapture of 25% might make this less worthwhile if you sell the property in 2 years)
• Did you already place the property in service and start depreciating it for 27.5 years (LTR) or 39 years (STR). In this case, it's messy to fix this and you have to file a Form 3115.
• You would consider a 1031 exchange to avoid depreciation recapture.
• Type of property (STR or LTR),
• How high is your W-2 income / other income
• REPS
• More factors ….
  
  

I’d get support from a tax pro to help you model this out and understand tax impact of cost seg to help in the decision-making process.
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

@Paul O'Connor I believe apartments.com has a service like this that helps find clients, do key hand-off, etc.

@Jeffrey Zhang A + B = C (tax savings)?

George P. if you don't find a California-based CPA you could see where people are based in the tax directory. 

The self-filing mistakes don't usually appear until you get a letter from the IRS, sell the property and need to fix it, or talk to other real estate investors and then realize you are missing out on thousands of $ in tax savings to save a few hundred $ in filing fees ...  

If this is for the 2023 tax year would recommend waiting until after 10/15 deadline. You'll have more luck, 

Alternatively, if this is more urgent check out Biggerpockets Tax Pro Directory