novacpa wrote:I've seen them for as low as $1,500 - but those are "generic" (general) - and many will not hold up under audit.
You need a specific engineering study (licensed engineer PE, must inspect the Property). Separate 1245 Property
from "structural components".
Make sure the cost-seg group has a track record with the Service.
Do these studies also point out that accelerated depreciation in later years is less than it would be under straight line? How much extra tax will be paid then? Over say 20 years owning a rental house, what is the tax savings for each year? What is the tax effect of selling, considering unrecaptured 1250 gain, etc. etc.? They always seem to focus on the savings in the first year or two, the future be damned.JR1 wrote: you'll see increased depreciation expense resulting from our study is conservatively estimated at an additional $91,658 over straight-line depreciation.
Frankly wrote:They always seem to focus on the savings in the first year or two, the future be damned.
the client also has substantial ordinary income in addition to the capital gain.
JR1 wrote:Is it really worth that much in time value of money to spend thousands on a study?
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