WHO SHOULD WE BLAME?

I am reposting this article, which was originally posted around February or March of this year because I have been contacting a different group of people who should know about Cost Segregation Studies but don’t. The sad part is that they don’t care and don’t want to listen and learn. That’s the shame about it!!!

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I complain a lot here that many Certified Public Accountants do not know anything or enough about Cost Segregation Studies and Bonus Depreciation and Accelerated Depreciation.? And that has proven to be true so many times.? As those who follow my articles regularly know, I took an income tax class last month in San Diego, California, and if I didn’t put my hand up when they were going over the one sentence that the class had on Cost Segregation Studies and “ANY” method of Depreciation, no one would have learned anything about these topics.

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When I got home, I called the continuing education company I used, Western CPE, which gave that class. I used the same company for most of my continuing education classes to maintain my CPA license.? I asked if they had any Continuing Education classes in Cost Segregation Studies, and they did have 2.? They had a one-hour introduction class and a two-hour “advanced” class.? I watched the online classes, and they touched on most of the essential points but left out some things that would have helped make the class more complete.

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There is another company that so many CPAs also use for their Continuing Education classes, and that company is called Spidell.? I called them and asked the same question, and they had NO CLASSES ON COST SEGREGATION STUDIES!!!? NONE!!!? I couldn’t believe it!!!

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If you want to know why so many Certified Public Accountants do not know anything or even enough about Cost Segregation Studies, blame the companies that give the continuing education classes.? But then I had another thought.? If the California State Board of Accountancy put questions about “Cost Seg” on the 2 ? day CPA Exam, maybe the schools would feel an obligation to spend more time teaching the classes and the topic.

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There is something that those of you who are not in the real estate industry and who are not Certified Public Accountants have to understand, and that is that Depreciation and the information uncovered in a Cost Segregation Study are crucial in determining taxable income or loss, net income, how much income tax an individual or company, of any sort, has to pay to the government and what the net income of a company is.? For a public company, it may be the factor in determining if a dividend is or is not paid!!!

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So, whose fault is it that Certified Public Accountants know very little about Cost Segregation Studies, Bonus Depreciation, and Accelerated Depreciation?? Start at the top at the State Governing Body of the State of California.? Because if it were on the CPA Exam, they would teach it!!!? Everyone would teach it!!!

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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, I also want to teach you something and hope to learn something from you, my audience!!!? You can call me at (818) 298 – 4000 after 10 AM Pacific Time Monday through Friday and, yes, even on the weekends. You can also send an email to me at [email protected], and I will always try to answer you in a timely manner.

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