Comments on: Purposeful Planning And Tax Shelter For Real Estate Investing http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/ Real Estate Investing through Purposeful Planning Fri, 29 Aug 2008 09:34:06 +0000 http://wordpress.org/?v=2.0.11 by: BawldGuy http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8256 Sat, 10 May 2008 05:22:09 +0000 http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8256 Thanks so much Kirk -- CPA's usually define themselves relatively narrowly. Thanks so much Kirk — CPA’s usually define themselves relatively narrowly.

]]> by: Kirk Kanenbley http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8255 Sat, 10 May 2008 05:09:42 +0000 http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8255 Thank you. I have never seen anyone write about a partial 1031 before. It was very informative. I've been looking through some other articles too. I'm really happy to have found your site. I'll be recommending it. You're definitely correct when you say that all CPA's are not created equal. Keep up the great work. Thank you. I have never seen anyone write about a partial 1031 before. It was very informative. I’ve been looking through some other articles too. I’m really happy to have found your site. I’ll be recommending it. You’re definitely correct when you say that all CPA’s are not created equal. Keep up the great work.

]]> by: Joshua http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8221 Thu, 08 May 2008 17:28:18 +0000 http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8221 I'll have to find that article you did on Cost Segregation. Thanks for the info Jeff! I’ll have to find that article you did on Cost Segregation. Thanks for the info Jeff!

]]> by: BawldGuy http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8220 Thu, 08 May 2008 17:02:38 +0000 http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8220 Hey Joshua -- I'm gonna assume you meant depreciation, not appreciation. Typically, either the investor and/or his tax preparer, will assign a value to the land, then divide the leftover building value by 27.5. That's the number of years the IRC currently allows for residential investment property. (It's 39 for commercial.) That's where most investors miss the boat entirely, 'cuz if the land is given a 20% value, here's what happens. The rule of thumb is that approach will result in a depreciable annual amount of +/- 3% of the purchase price. This is a relatively low figure when compared to what a specialist can bring to the table. Think at least 4% -- and literally GOBS more if you're using a more sophisticated approach knows as Cost Segregation, which I've written about here. Get a CPA who has been trained in real estate. All CPAs are NOT equal any more than all doctors can perform heart surgery. Know what I mean, Verne? Hey Joshua — I’m gonna assume you meant depreciation, not appreciation.

Typically, either the investor and/or his tax preparer, will assign a value to the land, then divide the leftover building value by 27.5. That’s the number of years the IRC currently allows for residential investment property. (It’s 39 for commercial.)

That’s where most investors miss the boat entirely, ‘cuz if the land is given a 20% value, here’s what happens.

The rule of thumb is that approach will result in a depreciable annual amount of +/- 3% of the purchase price. This is a relatively low figure when compared to what a specialist can bring to the table.

Think at least 4% — and literally GOBS more if you’re using a more sophisticated approach knows as Cost Segregation, which I’ve written about here.

Get a CPA who has been trained in real estate. All CPAs are NOT equal any more than all doctors can perform heart surgery. Know what I mean, Verne?

]]> by: Joshua http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8215 Thu, 08 May 2008 14:09:11 +0000 http://www.bawldguy.com/purposeful-planning-and-tax-shelter-for-real-estate-investing/#comment-8215 How do we calculate how much appreciation we can claim on our property(ies)? How do we calculate how much appreciation we can claim on our property(ies)?

]]>