THE SEMINAR WAS GREAT EXCEPT FOR ONE THING…

PART II OF II… THE END...

I now know that there is a “Cost Segregation Audit Technique Guide” put out by none other than the IRS and I now have a copy of this 261-page document. It is not what one would call an “easy read”!!! Now that I know about it and have it, I will read the salient portions of the guide and have all of the information I need to GUIDE (a bad pun) you, my clients, and future clients through the process. I will read the guide much differently than the Internal Revenue Service does, and I will get things out of the guide that benefit you, my clients, and future clients, not the IRS.

I learned one thing today, January 29th, that took me back and surprised me. The program I watched today from Western CPE said that the doors in a building are PART OF THE BUILDING AND NOT TANGIBLE PERSONAL PROPERTY. The last time I looked, you could take a door off its hinges in about a minute if you linger, without destroying the structure at all!!! And that is what I thought the rule was when considering what part of the building is Tangible Personal Property, segregating, or separating, the door from the wall could not destroy the wall or the structure. And it doesn’t!!! You can bet that the IRS will get a letter from me, it’s the least I can do!!! By the way, I just talked with one gentleman from CSSI who I respect and admire, and he said that the doors ARE part of the structure. I am now on a personal and professional campaign to have them designated as TANGIBLE PERSONAL PROPERTY!!!

I spend my 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. 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 are unsure 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. Secondarily, you save some income taxes but that’s not the real benefit of Cost Segregation Studies!!!

I 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 hope 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 email me at [email protected] and I will always try to answer you in a timely manner.