The entire purpose of an appraisal is to derive value using comparable, not just appraise it for what you paid plus improvements.

The scale of which you can force the appreciation on a commercial property is so much greater.We must all remember that commercial property derives it's value from it's NOI and cap rate.

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"

For a single family dwelling, the cost of the study would far outweigh any benefit you might derive from accelerated depreciation.Just how I see it.

@Ned Carey  Thanks Ned.. to be fair I have derived substantial income through the years funding turn key providers.. although I try to deliver on what I know..

 For the people that say even if you have a full time job and do just 1 flip...that the income derived from the flip is automatically subject to SE tax of 15.3%.

This data spans ~150k units across the various US regions and with varying ages:FWIW, the economic loss percentages are at essentially historic lows.Note this isn't apples-to-apples to this conversation since that data is derived from operating larger apartment communities that have economies of scale, staff on payroll, and other significant differences.Just data.

Then again it would be hard even claiming a loss given the limitations on expenses and deductions.Deductions allowed cannot exceed the excess of gross income derived from such use for the taxable yearLink to IRC 280A: Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc. https://www.law.cornell.edu/uscode/text/26/280A

But it stands to reason in these areas were the value is basically solely derived by the income they produce and the cost of capital .. 

At some point though this scam will hurt investors and that concerns me. because real estate is a derivate of M2 money supply.