All Forum Posts by: Karen Yu

Are we able to export all the properties we put in in the Rental Property Calculator as a .csv file? 

Make sure they provide IRS Audit Guarantee.  KBKG provide DIY software for properties under $500K as well.  

How much is the gain?  What you want to achieve?  What are your short term and long term goals?  all these need to be answered before adopting a strategy or strategies.  :)

Yes @Andrew Taylor for the COGS $200K.   Use sub accounts to track different costs to centralize the data.  It's all personal preference.  

The accounting for flipping is pretty easy.  The house that you flip is like inventory.  All the cost goes to one inventory account.  You can use class in QBO to separate different properties, and use sub account to track interest, assumption fees or closing cost if you would like.   Once you sell, you bring the inventory to P&L as cost of goods sold.  

@Jaysen Medhurst 

Not everyone has positive cashflow after regular depreciation.  And also there are other ways to reduce to net income other than accelerated depreciation.  :) 

When to use accelerated deprecation

- I have a client who purchased an apartment building back in 2014.  She made $1M in 2017 and did a cost segregation in 2017.  The cost segregation / accelerated deprecation gave her ~$460K expenses that she used to offset her $1M income.   This is a perfect example of when to do use accelerated depreciations.   She has other properties that we are not doing cost segregation right now.  Keeping those in the pockets when another good year comes is a good strategy. 

Real Estate Professional or not

- I have another client who has a w2 job and also owns a retail shopping center.  He did cost segregation study and created $800K expense for 2018.  Since he does not qualify as a real estate professional.  He could not use this $800K expense to offset with his w2 income, only to his rental property income.  The remaining unused accelerated depreciations carries forward.