Real Estate Status and Cost Segregation

[Dewey Jurich]

Hi, 

Over the last year i've acquired 2 rental single family residential properties (not in LLC yet since rates are so high they are standard 2nd property 30 year loans). I also have an LLC that owns and leases commercial space (will have nice profit this year), and i have a s corp construction business that will have a good profit this year. I've logged my hours over the year and i hit the 750 hrs required for REPS status. i'm interviewing new personal accountants now (we're transitioning business accountants and they are not great personal tax advisors i feel; they are the "paying taxes are good type of people). i'm just trying to get any additional insight (unfortunately i feel you need to double check everything these days).

a few questions - Any insight is greatly appreciated!

1. Can you do a cost segregation on a property even if its owned personally (not in an LLC or S corp)? ( i know a lot of people advise against due to cost for low return, but i'm looking to maximize cash conservancy for other investments and for potential downturns of my construction business. )

2. REPS status - is there any form you need to complete prior to year end or when you file?  or is it a simple selection box on the IRS return? 

3. Does REPS status increase chances of audits?  

4. Any accountants recommended in the eastern PA, Delaware region?