All Forum Posts by: Suly B.

@Rahul Handa I read somewhere and maybe it was here on BP that it's not about IF you'll be sued but WHEN.

Have a top notch lawyer handy and keep increasing your knowledge by asking questions. To your success,

@Joe Splitrock  This is what I got out of Ryan’s post.  He has 9 cash flowing rental properties and he’s considering two different options at the moment. I simply mentioned a 3rd option which can reduce his taxable income and increase his cash flow.  Joe, if you’re under the impression that you can’t cost segregate “after the fact” you’re missing out on a great opportunity even for yourself.  The truth is you can do cost segregation anytime during your ownership and "catch-up" the accelerated depreciation you would have gotten if you did cost segregation in year one.  To do this though, the law requires you to file a Form 3115 Change in Accounting Method.  Also, there are cost-effective solutions for properties with a basis as low as 200k.

To your success, 

@Ryan McCook talk to your accountant or CPA about cost segregation. It's an excellent tax savings strategy for buy and hold investors.

@Dave Foster and @Michael Skoczylas

Thank you kindly for your responses, I have a meeting coming up and I will be sure to share your expert answers with my team!  If you'd like to send over anything else that could be helpful please do so. 

To your success, 

Suly

As a real estate investor involved in the world of cost segregation, I get a lot of questions from other investors surrounding cost segregation and 1031 exchanges. Both are advantageous tax strategies but I have limited understanding of 1031.

I’d like for an expert to help me by answering two questions:

• Is there value in doing a cost seg study prior to completing a 1031 exchange to significantly lower the transferred depreciable basis?
• What complications would arise with this combination or what does it look like over a couple of reinvestment cycles?

@Kevin Gray Sometimes people forget that they were once a newbie too, take his comment with a grain of salt. Bigger Pockets IS a very welcoming community you'll see! Great forum question by the way Kevin. Last but not least, due diligence is every investor's responsibility.

@Steven Hamilton II I'm interested in the cost segregation spiel Steve. Knowledge is power!

@Natalie Kolodij I agree with both examples, cost segregation is another excellent tax strategy that often gets overlooked by CPA's and tax professionals. Savvy investors shouldn't have to convince their CPA to consider the additional depreciation deduction numbers. The CPA should be hunting for ways to benefit their client to begin with.

@Johann Jells my intention was to receive answers for what real estate investors spend the most money on (improvements, evictions, HVAC etc).

@John Fedro I appreciate the response.  I'm thankful for the Bigger Pockets community because it's a great place to talk to the pros and learn what mistakes to avoid.  

You mentioned "making the wrong repairs"  can you expand on that a little? I made the mistake of throwing too much money at cosmetic improvements.  You?