How can I apply cost segregation to my proforma?

[Jay Ben]

does anybody apply cost segregation depreciation in their financial model? Is there any way to do it without having an actual cost seg study done first or could I use a general assumption?

[Arn Cenedella]

@Jay Ben

Sorry that’s not a good idea. 
Every investor’s tax situation is different. Some can use the passive losses generated by cost seq and bonus deprivation, some can’t. 

I don’t that info in my proforma but I do include in my investment summary after I have received a rough estimation from my cost seq vendor. 

It would read like, we estimate a bonus deprecation amount of about 40% of one’s investment amount. But we are very careful to emphasize “estimate” and the need to consult a tax professional to see how these passive losses might be used to reduce an investor tax liability. 

The decision of these passive losses is extremely tricky.