Information on Chattel Appraisals

[Andrew Edwards]

I have several multi-family properties and I'm always looking for ways to increase my cash flow. Can we start a discussion on Chattel Appraisals?

Who has used this and would you recommend using this strategy?

Can you tell me about the benefits or risks involved.

[Conrad Scoville]

Chattel appraisals or cost segregation are not only recognized by the IRS but if you file this way you have to fill out a form stating you are changing from incorrect filing to correct filing. The IRS expects cost segregation, if you are not doing this you are technically filing your taxes incorrectly. Often times because your CPA is lazy or not fully knowledgable. As I understand it you can have an engineer and/or tax professional do the chattel appraisal. Either way you should do it because you are losing out on large deductions and it is technically what the IRS expects!!

https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction