THE SEMINAR WAS GREAT EXCEPT FOR ONE THING…

?

Last week, on January 25 and 26, 2024 I attended an income tax seminar or update in San Diego, California given by “Western CPE”, one of the best continuing education companies for Certified Public Accountants that there is. ?There as a full house of over 100 participants.? It was full of information to bring us current with the current laws.? There was a whole chapter on Real Estate, my specialty.? One of the first things brought up was Cost Segregation Studies.? They only spent just a few minutes on Cost Segregation Studies, maybe 15 minutes our of 15 3/4 HOURS of time on everything else and I think that is WRONG!!!? My questions or comments brought the Cost Seg time to 15 minutes.? If not for that, it would have only been a mention…? And, by the way, to any CPAs reading this, I wouldn’t think that the other CPA CPE companies, like Spidell, would spend any more time on Cost Segregation either.

?

The instructor said that, and I am paraphrasing her, Cost Segregation Studies will give you some benefits with depreciation deductions.? SOME BENEFITS?? My hand went up in the air immediately and I was called on and I blurted out that Cost Segregation Studies will give you at least 40% of the improvements, minus the structure, and that creates some wonderful cash flow due to the deferral of income taxes by taking either accelerated depreciation using 5, 7 and 15 year lives for Tangible Personal Property or by taking Bonus Depreciation which seems to be coming back to 100% for the current year and possibly 2025 as a bipartisan bill is being considered in Congress as we speak.

?

I spend my full days studying Cost Segregation Studies and the ways that I, or we, my partner is Fred Sams, can benefit our clients by deferring a whole lot, NOT SOME, income taxes by using Cost Segregation Studies and I thoroughly enjoy the people at CSSI, the engineering based company that we use for our Cost Segregation Studies, as CPAs are not trained to do those studies and, if you want to beat the IRS every time you come up against them concerning accelerated depreciation or bonus depreciation, use a licensed company, like CSSI, to do your studies!!!

?

And you wonder why there are soooo many CPAs out there who say “WHAT?” When I ask them if they know what Cost Segregation Studies are and what they do.? Some CPAs have heard of them but re not sure exactly what they do.? Their only response is that they save income taxes.? They do not understand that they are a deferral that creates some wonderful cash flow when you purchase commercial real estate allowing the investor to qualify for a loan to purchase the property, improve the property you are buying, maybe purchase the property next door for expansion or take that wonderful romantic vacation with someone you love that you may have been putting off for what seems a lifetime.

?

I just like to always throw that last benefit in because I am romantic at heart!!!

?

My name is Paul Levine, and I am a Commercial Realtor, a Real Estate Advisor, an Investment Advisor, an Income Tax Consultant, an Author, and a Residential Realtor of Luxury Homes in Southern California!!!? I was also a University Professor for 6 ? years.? So, my desire is also to teach you something and I am also hoping to learn something from you!!!? You can call me at (818) 298 – 4000 after 10 AM Pacific Time Monday through Friday and, yes, even on the weekends. Or you can send an email to me at [email protected] and I will always try and answer you in a timely manner.

?