Comments on: Cost Segregation — Part I — Never Heard Of It? Blame Your CPA

by: JHarrison

Thu, 03 Jan 2008 16:37:00 +0000

Well said. I am a Consultant for Cost Segregation and have dealt with too many CPA’s to count. Some are great, but most get very defensive about it. They don’t like to admit they are wrong and they advise their clients to steer away from the Cost Seg. It’s really too bad. I have saved clients millions by doing these Engineering based CS studies. They are a no-brainer!

BTW, if any of you need my services, just drop me a line at jeremy@harrisonci.com, and I’ll take care of you.

by: bawldguy

Fri, 04 May 2007 20:18:08 +0000

Appreciate the thought Steve. Now all I have to do is let my head shrink back to normal size so I can leave the building.

by: Franklin Tax Group

Fri, 04 May 2007 20:01:19 +0000

Kudos to Bawldguy for his innovative thinking and great understanding for the benefits of cost segregation studies. I’m a CPA in Indianapolis and own a firm that specializes in cost segregation studies. I just spoke to Bawldguy for nearly an hour. I am yet to talk with any real estate consultants/brokers/agents in the midwest that know more about the subject than Bawldguy. In fact it is rare for me to meet anyone that has even heard of it, including CPAs.

by: bawldguy

Wed, 21 Mar 2007 20:46:39 +0000

Dan - Amen brother.

Please email me your phone number. i’d like to speak with you if that’s ok.

by: Dan

Wed, 21 Mar 2007 20:39:47 +0000

Most investors and CPAs don’t have a clue what a Cost Segregation Study (CSS) can do for their bottom line.

I am a provider of CSS and I just completed a study for a client who had 3 properties with a cost basis of $4.4 mil. The CSS saved this owner $150,000 CASH on his FY2006 tax return. And this was after owning the buildings for 4 years and paying my fee.

Cost Seg works. Don’t let your CPA tell you otherwise.

by: bawldguy

Sat, 10 Mar 2007 18:01:36 +0000

Cher - Unfortunately what you have to say about CPA’s is true most of the time.

Not only are there firms who specialize in CS, but it’s risky NOT to use them. This is because the IRS tends to believe licensed engineers more than you and your account fumbling around. Also, there are over 300 cases which have rulings in favor of the taxpayer when they’ve used specialists.

In any case, I’ve never heard of either a taxpayer or a CPA who could come close to the amount of depreciation a CS expert can produce credibly.

by: Cher

Sat, 10 Mar 2007 17:48:38 +0000

We got this concept from Albert Alliello’s tapes a few yrs ago. We asked our CPA about it and it thought it sounded “too complicated”.
So are there really companies you can pay to do the componentizing for you?
Then I guess you would just show up at tax time with the figures and demand that the CPA just plug them in.
Like Albert Alliello says, most CPA are just bean counters. YOU have to do the thinking and stategy for them…the just tell them what to do.

by: BawldGuy

Wed, 07 Mar 2007 17:38:35 +0000

Chris - That’s priceless.

As you’re aware Chris, some things we see and hear from CPA’s just can’t be made up.

Of course, none of them compare to hearing house agents talk about tax law.

I bet you’ve heard some great ones yourself.

Thanks for the laugh.

by: Chris Lengquist

Wed, 07 Mar 2007 17:26:33 +0000

CPAs. I had a frantic real estate agent from another city contact me regarding bifurcating/segregating depreciation. She said her client’s tax planner told her that she need to talk to her real estate agent to get more information… Thought you might find that amusing.