An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provides support for the property tax appeals process.Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

So, selling price of $645,000 minus purchase price $415,000 minus new kitchen $50,000 is taxable about $180,000 at 28% tax is $50,000 tax to IRS.

How should I set up my business structure so that income from my rentals doesn’t increase my personal income reported to the IRS?

I used a basic DIY segregation study with an IRS audit guarantee.

Hi everyone thank you for hopping in briefly, I just wanted to depict how I entered the business of short-term/vacation rental.

A lot of what the  IRS does is cross check things it “sees”.  

I don't change anything because I don't want to screw up their system that so far has done a good job of keeping me out of trouble with the IRS haha 

I would be happy to hop on the phone with you and discuss Memphis. 

People love to talk it up on an Internet board but will never hop on a live or recorded call that would be broadcast to the same people they are trying to impress.

However there is this really REALLY Nasty IRS Rule called AMT that has me looking for a way to spread this gain over a few years.