Your question is really bad since there is no consideration to type of accounting methodology usedI am going to assume your company (partnership, llc, S-Corp ) uses a cash basis accounting for the building and not accrual accounting (example and explanation here http://www.nolo.com/legal-encyclopedia/cash-vs-acc... ) since the furnace is considered a relatively large capital expense in the differing methods would be treated completely differently.Also did you use any form of financing on the Furnace?

@Suzanne Johnston I strongly recommend that no matter what CPA you choose, be sure they understand the nuances and appreciate the complexities of commercial real estate investing and the advantages available with the IRS' preferred methodology of cost segregation which is engineering-based.

Their philosophy was that they have made and continue to make millions and millions of dollars, so they want all agents to stick to their methodology for generating new business. 

@Michael S Dawson While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

I think this stems from a short period before the CFPB made changes in the regulations last January where this was technically legal if done very carefully, and following a narrow methodology.

The methodologies I use here for Hampton Roads investing doesn't seem liek they would work in NoVA, so I would like to understand the market better to come up with a stratagy that would work for that area.If you guys don't mind, I would like to network with you guys to get something rolling.

My main issue with that methodology is it's an assumed gain.  

Purchase price: $112,000 Cash invested: $7,000 Sale price: $150,000 The education I've gained from my first (personal) house:-House hack (several roommates)-Live-in-flip (floors, carpet, kitchen, yard, bathroom, paint, demo, mechanicals)-Refinance (75% of a greatly appreciated property through both forced and community appreciation)-Property Management (Practiced methodologies learned through the podcasts and books to find and place tenant)-Rental (Used BP forms - Application, Lease, Amendment, and Move-in Checklist; used BP calculator to figure my numbers) What made you interested in investing in this type of deal?

The Zillow Research data is from June 2019, as Zillow changed their methodologies after that, causing a discontinuity in the data.

Thanks to “The Book on Flipping Houses”, I have refined a bit of my methodology and feel like I’m positioned for a successful project.