How to find a company for cost segregation study?

[Whitney Griffith]

Hi, newbie question here.

I want to have a cost segregation study done this year on a STR I purchased in Missouri last month. It is currently in service, came fully furnished, and I will renovate in January.

I did a search on cost seg companies thinking I'd find one local to Branson, MO. I did not, or did not know what to look for. 

Any advice on how to find and select a company, do they have to be local? How long does a study take, I've seen a 6 week estimate online? Can the study start in 2022, but not be completed to be counted in 2022?

[Michael Plaks]

@Whitney Griffith

Does not need to be local, however a local one can be quicker and maybe cheaper since travel is not involved. Two resident experts that own cost seg companies and work nationwide are @Yonah Weiss and @Julio Gonzalez. 

Whether or not it is helpful in your specific situation and if yes, whether it is cost-efficient is a different question, best addressed by your accountant. For some clients we recommend doing it, and for others we don't. A lot of factors need to be considered.

If you plan to apply cost segregation to your 2022 tax return, you need to complete it by the time you do your taxes next year. No need to start it by the end of this year, unless you need the extra deduction for the cost of the study.