Is Forcing Depreciation a thing?

[Carlos Bello]

So I was recently on the hunt for a new CPA, one that focused on Real Estate strategies. One interesting strategy he mentioned that really stuck out to me was "forcing depreciation". He didn't elaborate too much on this but I honestly cannot stop thinking about it (if it's true). 

To my understanding, it's basically when an assessment is done on the property by a professional and determines the entire value of the depreciation remaining on the property. Which will then allow you take a lump sum (forcing the depreciation) for the remaining years instead.

Has anyone ever heard of this?

[Yonah Weiss]

@Carlos Bello not sure if he was referring to cost segregation, as I've never heard of that referred to as 'forcing' depreciation. What you are essentially doing is reallocating assets within the property that depreciate at faster lives. for example personal property (appliances, furniture, fixtures, carpeting, etc.) depreciates over 5 years, and land improvements (pavement, landscaping, fencing, etc.) over 15 years. You can take all of that depreciation over the shorter lives, or even take it all up front in the first year with 100% bonus depreciation.

What you said:

He also stated that whatever funds I received from the accelerated depreciation, I would have to pay only remaining years of the depreciation if I ever sold the property. 

That's not accurate, unless you you do a 1031 exchange. But it looks like he was throwing a lot at you without really explaining too much. There are a lot of missing parts over here.