All Forum Posts by: Dana Yobst

@Dana Yobst 

While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies. If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored. Here's a https://www.irs.gov/businesses/cost-segregation-audit-technique-guide-chapter-4-principal-elements-of-a-quality-cost-segregation-study-and-report to the IRS website noting specific items that are included in the cost segregation study report.

This is a long revived post- 

I'll add a little tax pro insight from what's happened in the last 2 years 

The IRS went from < 100 engineers on staff who were qualified to audit cost segregations to a few hundred. 

I have been able to review or been told of several audits (from other REI tax colleagues) related to cost segs in the last year or so- and of those none of DIY cost segs were allowed under audit.

This is a long revived post- 

I'll add a little tax pro insight from what's happened in the last 2 years 

The IRS went from < 100 engineers on staff who were qualified to audit cost segregations to a few hundred. 

I have been able to review or been told of several audits (from other REI tax colleagues) related to cost segs in the last year or so- and of those none of DIY cost segs were allowed under audit.

I love algorithm based cost seg studies. I have used KBKG in the past but I currently use DIY cost segs, https://diycostseg.com/who-we-...

I like them better than KBKG because if you make a mistake you can correct it. Feel free to reach out to me for a friends and family discount code. I do this on all my properties-even small ones. 

This is not tax or legal advice, just what I personally do, consult your professionals! 

 I'm in the exact same boat, with very similar advice from others.

@Daisy Hawkins

Any attorney can show you're behind your LLC if you ever get sued. It's simple for them to do. Just ask them. I would just keep it in your personal name and get extra liability. I switched the deeds from 6 of mine that were in my personal name over to my LLC and wish I didn't.