Cost segregation study wanted!

[Jerry Fung]

I am looking to do a cost segregation study on a 3 family and 4 family properties in Bronx, NY.  Are there any recommendations on which firms I should go with?  Thanks very much.

[Eric Shadowens]

@Jerry Fung

Hello Jerry,

Are you working with a tax advisor or preparing a return on your own? Do you have a full-time W2 job not in real estate? Are your properties LTR or STR? Do you meet the REPS for LTR or material participation for STR?

I recommend the residential cost seg calculator through KBKG.com to clients I work with when the depreciable value is less than $600k and there are less than 6 units.

If the depreciable value or units are greater than those amounts you may consider Madison Specs and Yoneh Weiss, but they are always worth a conversation to get better educated when considering a cost seg.

You may already be aware of the potential passive activity limitations, but it is worth mentioning here if not. Consult a tax advisor to make sure the accelerated depreciation eligible in the cost seg will benefit you.

Thanks

Eric