All Forum Posts by: Bernard Reisz

@Andrew Flora Lots of great info on this thread. For those derive tax benefits from cost seg, it's a "no brainer" if you can work with a reputable and cost-effective firm. 

Not everyone derives benefit from cost seg, and the good firms help you and your tax advisor determine whether or not you should proceed with the study.

Another monkey wrench in all this is Biden's tax plan for real estate investors. My resource for all things cost seg is @Yonah Weiss.

Kudos to @Clint Harris for using a well-thought-out strategy! The only iimpediment to executing your strategy appears to be misinformation supplied by a service-provider - and, now that @Yonah Weiss has chimed in, you can connect directly with the highest-quality cost seg resource available!

@Christopher Lombardi Self-insurance makes sense in some scenarios when approached with a well though-out risk management strategy. Also, there are many degrees and forms of self-insurance. Usually, you'll end up with some hybrid between pure self-insurance and purchased coverage. Some examples:

- High deductible policies are a form of self-insurance

- Stand-alone captive insurance w/ re-insurer backstop 

- Group captive w/ re-insurer backstop

There are many other approaches, but the key is a solid understanding of risk profile and risk management. (And, beware of promoters that are selling captive insurance as a tax-shelter; not saying that they none of them provide the purported tax benefits - just that you need a captive insurance tax expert help you make informed choices.)

When pursuing these accounts and accepting recommendations from people, it's important to:

• ensure there's no conflict of interest (e.g., substantial affiliate kickbacks) and 
• perform at least a modicum of due diligence on the provider (# podcast appearances aren't too helpful; check if their background to see if it's aligned with their claimed expertise, etc.)  

I assure you it's not above your head if you choose to work with someone that will be transparent with you, rather than a promoter using marketing gimmicks. 

As a CPA that works with an array of self-directed investors, I'm constantly astounded by the # of people that have signed-up for some mysterious account type for which they shelled-out substantial $$$ - and they don't even have clue as to what type of account it is from tax & labor law perspective. And, if they don't know what they have - they can't possibly operate it compliantly. 

Work with a provider that thrives on knowledge; avoid promoters that thrive on ignorance.

(Please do not ask me to specify which providers fall into either category. You'll have to exercise your own judgement.)

@Breanne Lemons Yes

@Breanne Lemons You're taking a great approach by seeking input from a qualified source. Use of these accounts opens new worlds of compliance, strategy, and planning.

@Todd Nurnberger Glad to share. It's at: 

https://www.passivewealthstrategy.com/self-directed-ira-myths-what-are-udfi-and-ubit-with-bernard-reisz/

@Alina Trigub @Todd Nurnberger Glad to chime in here, but I actually did a podcast with @Taylor L. about this topic and many have found it helpful. There's great info on this thread already, and you'll find more than can be put in a BP post in the recording.

@Alina Trigub Honored by the mention. Thank you.

@Mark Pedroza Honored!

@Hjiorst Fjioords You should certainly do extensive research prior to selecting a provider. Well-done research will make you an educated consumer and aid in your search for the right provider. Even after extensive research, you must feel extreme confidence in your provider, as there a many "unknown unknowns" that research won't uncover - and it's your choice of service provider that will determine how well those "unknown unknowns" are navigated.