Seasoned Real Estate CPA Expert Answering all Questions on Investing Tax Strategy

[Account Closed]

As a specialized real estate CPA, I'm here to provide expert guidance on your most complex tax matters, from navigating 1031 exchanges and cost segregation studies to optimizing your rental property deductions and handling multi-entity structures. Whether you're a seasoned real estate investor or just starting out, fire some questions at me and let me provide you with some insight that I'm hoping will be helpful to you in your investing journey.

[Jim P.]

Ok, I wasn't going to say anything, but this thread just keeps on going.  

The answers in this thread are being generated with ChatGPT.  As soon as I read the first answer, I could tell immediately it sounded very much like a ChatGPT answer.  The answers are nicely worded, but they're also generic and often are missing key information in response to the question that a tax professional specializing in real estate would likely know to mention.  

Just to check, I copied and pasted some of the questions in to the free version of ChatGPT 3.5, and I got back answers that included nearly identical responses.

Here is an example from an answer that the CPA replying to this thread posted:

Congratulations on your house hack! It's great that you're thinking about optimizing your tax situation. Here are some steps you can consider:

1. Depreciation:
   • Residential rental property is depreciated over 27.5 years. You can deduct a portion of the property's value each year to account for wear and tear. The land value is not depreciable, so it's important to allocate the property's value between the building and land. This is typically done based on the property's assessed values.

...

Starting to work with a CPA early in the process can help you set up good financial habits and ensure that you're taking advantage of all available tax benefits. They can also provide guidance on structuring future real estate transactions for maximum tax efficiency.

Here is a snippet from what I got when I copy and pasted the question he was answering into ChatGPT 3.5:

Congratulations on your first house hack! It's great that you're already thinking about optimizing your tax situation. Here are some considerations, but keep in mind that tax laws can be complex and subject to change, so it's advisable to consult with a CPA for personalized advice.

1. Depreciation:
   • When you own a rental property, you can depreciate the cost of the property over time. This includes the building and any improvements. Land, however, is not depreciable. You can use the Modified Accelerated Cost Recovery System (MACRS) to calculate depreciation.
   • Residential rental properties are depreciated over 27.5 years. For example, if your property (excluding the land) is valued at $275,000, you can deduct approximately $10,000 per year ($275,000 / 27.5).

...

Remember, tax laws can be intricate, and your personal circumstances may affect how these rules apply to you. It's crucial to work with a qualified CPA who can provide guidance based on your specific financial situation and local tax regulations.

I don't know if Bigger Pockets has a policy on people using AI to generate answers to questions.  But it seems to me, if someone is doing that, they should at least disclose it.