Do I need a professional cost segregation for new construction

[Jon Begley]

I recently finished construction on an 8 unit apartment building and it contains a mixture of 5, 15, & 27.5 year property. My question is, I have invoices for what those specific items cost so do I still have to have a professional cost segregation done to break them out of straight line depreciation. My current tax preparer, whom I'm looking to replace, had no idea. Thanks in advance for any insight 

[Dave Foster]

@Natalie Kolodij and @Yonah Weiss,  There's so many question marks leading up to the new bill that it's hard to speculate how the two types of property, 1245 (personal) and 1250 (real) will interact.

Up to now there have been two general guiding principles

One has been that State law governs the definition of real estate for 1031 and federal law governs rules of depreciation.  And in most if not all states, things like fixtures appliances, floor coverings, etc etc are considered to be part of the real estate.  So it has been possible to 1031 exchange all of a property under 1250 including portions that have been segregated out for accelerated depreciation under 1245 because the state says it's still real estate.  

The other guiding principle is that in any 1031 there will be a mix of 1245 and 1250 property in every sale and purchase.  So In any event it was possible to still 1031 most if not all of the sale.  It could just get complicated as you can imagine trying to allocate the sales side and then the purchase side for all the various types of property.

The joker in the deck is the potential elimination of 1031 for personal property.  I'm waiting for someone smarter than me to make the call.  Will this mean that the segregation of property into 1245 eliminates it's use in a subsequent 1031 exchange?  Or will the state definition of real estate still hold and even property segregated as personal can still be 1031d.

Who knows at this point???