For example, MMLLCs will generally run $1,200+ in tax prep costs whereas a SMLLC does not file a separate tax return and thus avoids tax prep costs (for the most part).To scale an entity structure without incurring high costs, you and your partner may form a MMLLC that then takes 100% ownership stakes in subsidiary SMLLCs that own the properties (assuming you aren’t syndicating).Or you may start a real estate fund that is a MMLLC with various share classifications.

The rates vary depending on the location's classification as high-cost, standard, or low-cost.

Here’s an article addressing Cost Segregation Study FAQs.Asset classification becomes very confusing with mixed-use property as mentioned above, the useful life for commercial properties is 39 years and for residential properties, it is 27.5 years.

It's a government agency so lots of red tape and unless you find something really wrong about their classification, I doubt they'd change it.

There's a ton of investment happening and a lot of neighborhoods transitioning from C to B Class. If

This keeps me in the semi retired classification.

Examples of zoning variancesEngaging in construction or some other alteration so that the building or property qualifies for a new zoning classification, like modifying a single-family home to be a duplex.

I could start a real estate training class if I had the ambition to do it which I dont.

As far as entity creation goes, I usually recommend that a new individual starting a business use the default classification when they’re just starting out.

Generally I would assume you would have to either raise the floor level of the structure, or berm it or something in order to flip the classification.