Modified Accelerated Cost Recovery Analysis on Properties?

[Joyce Ables]

My CPA was discussing some ways to accelerate cashflow on my properties and mentioned bifurcated deduction/depreciation on some of the improvements (e.g., carpet, appliances, blinds). However, she mentioned that for the deductions to "stand up in court", I'd have to have a study completed by an engineer as a qualified 3rd party. I would then need to supply my CPA with that report come tax time. She could not provide me with what type of engineer I needed nor refer me to any companies that do such studies. I'd appreciate any input you have. My questions are: 

(1) Have you filed for bifurcated deductions? 
(2) If so, how did you do it? Did you use a qualified 3rd party or do it on your own (using your own documentation/receipts)?
(3) If you used a 3rd party, could you please recommend them to me?
(3) Can you think of any other questions I need to be asking or anything else I need to know on the subject?

[Ashish Acharya]

Originally posted by @Joyce Ables:

My CPA was discussing some ways to accelerate cashflow on my properties and mentioned bifurcated deduction/depreciation on some of the improvements (e.g., carpet, appliances, blinds). However, she mentioned that for the deductions to "stand up in court", I'd have to have a study completed by an engineer as a qualified 3rd party. I would then need to supply my CPA with that report come tax time. She could not provide me with what type of engineer I needed nor refer me to any companies that do such studies. I'd appreciate any input you have. My questions are: 

(1) Have you filed for bifurcated deductions? 
(2) If so, how did you do it? Did you use a qualified 3rd party or do it on your own (using your own documentation/receipts)?
(3) If you used a 3rd party, could you please recommend them to me?
(3) Can you think of any other questions I need to be asking or anything else I need to know on the subject?

 He is talking about the cost segregation study. However cost seg will not improve your cashflow rather save you taxes, if that’s what he meant. 

You have not shared what kind of peppery you have l, but you need to do the cost-benefit analysis if cost seg makes sense. If you do it, you probably have loss, but if you can’t claim the loss, you will just carry it forward. The study might not be as beneficial because you are just accelerating the deduction that didn’t benefit you as losses are limited. It might not be limited as your as real estate professional or your are below 150k AGI. We don’t know the details. 

@Yonah Weiss can  help you with the cost benefit analysis. 

You can read more on the cost segregation here, if you search.