Assets identified in this study include:Standard windows and doorsInterior ceilings and wallsBasic plumbing and electrical systemsBuilding structural elements and roofingBasic HVAC componentsWater heatersFire protectionThis 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.

What makes me nervous is that the cashflow accounts for about 70% of my income and I'm wondering if it makes more sense in my situation to sell and diversify.

Account Closed that's not the case as long as you live in it as your primary residence for 12 months.

(the accounting theory behind it) Your question implies that you expect some logic behind our tax system.

As you mentioned intentional flips are typically considered inventory-This means the income is ordinary income and as such: - Is not a capital gain, so hold time of 1 year does not change to a better long-term capital gain rate - Can not be invested in a QOF Deductions related to it can't be pushed or changed- all costs are accounted for with the inventory component 

I'm Nick - a 26 year old tax accountant living in Charleston, SC.

Jack Robinson is my account exec.

Maybe refer them to RamseySolutions.com as Dave Ramsey does a great job with simplifying budgeting for people.That being said, you can have compassion for people AND hold them accountable to their contract. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

@Kelly BeckYou are correct the buyers pay but what do they do if they are paying the fee - they lower their price to account for that fee.