Here's how a seeming tax disaster turned into a strategic triumph.Picture this: You're sitting with your CPA, reviewing the sale of your residential rental property.

Assets identified in this study include:Standard windows and doorsInterior ceilings and wallsBasic plumbing and electrical systemsBuilding structural elementsBasic HVAC componentsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

I will continue this no matter what because I believe it makes a difference in reviews.

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

Happy to give you opinions on deals if you need to review some stuff.

Perform due diligence by reviewing the financials, market trends, and property condition.

After a few nasty emails and him threatening to sue me if I left a bad review, I paid him in full, $7000 and moved on.

You can also search Google and read reviews.

I recently completed one on a multifamily property and found it to be a cost-effective approach.That said, there are a couple of additional factors to consider beyond the code differences between a garage conversion and new construction:Coastal Overlay Zones – If your property is in a coastal overlay, building a ground-up ADU may require Coastal Commission review, which can add time and complexity to the process.

By prioritizing five-star reviews, I built a strong reputation, which led to increased bookings and higher profitability.