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Updated over 2 years ago on . Most recent reply

User Stats

89
Posts
26
Votes
Tom Nguyen
  • Rental Property Investor
  • Austin Tx
26
Votes |
89
Posts

Is it good idea to show Huge depreciation after cost segregation?

Tom Nguyen
  • Rental Property Investor
  • Austin Tx
Posted

Hello BP.

I wonder is it good idea to show huge depreciation = huge loss after cost segregation with 100% bonus depreciation.

My CPA  recommend not taking all deprecation  because He/she not comfortable with all the paper loss. He/she said it better to just take some items and spread out  some to not create huge loss. 

What is follow BP doing on their cost segregation? What is CPA in BP forum recommendation? I would love to hear what other bigger player do when they cost segregation their apartment building because that will for sure have huge depreciation? 

Thank You 

Most Popular Reply

User Stats

45
Posts
27
Votes
Ana Klein
  • Accountant
  • Milwaukee, WI
27
Votes |
45
Posts
Ana Klein
  • Accountant
  • Milwaukee, WI
Replied

Tom, depreciation is a noncash expense and your lenders should add it back. We have clients that show over 100k in losses because of cost seg and they don't have any issues. 

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