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Subject Author Date
accelerated depreciation Andrew_Bitler 02-17-2007
Posted by Andrew_Bitler on February 17, 2007, 4:58 am
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 Hello all, my name is Andrew Bitler. I am a small real
estate investor with big problems. I recently joined a bunch
of forums because there is an important issue I need to
investigate. I am utterly confused about a certain tax
strategy, so I hope you folks out there can help me out.
Here is my situation:

I want to save on taxes and that's why I invested in real
estate. In 2006 I purchased 2 rental properties. I maxed out
my deductions until I couldn't find any other way to lower
my taxable income. A lawyer told me to accelerate
depreciation on my properties, but I didn't want to have to
pay him to figure out what that means. I imagine that means
I can increase my depreciation deduction, but how? Anyone
know what he is talking about?

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Posted by DORFMONT@aol.com (Linda Dorfmo on February 18, 2007, 3:11 am
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> Hello all, my name is Andrew Bitler. I am a small real
> estate investor with big problems. I recently joined a bunch
> of forums because there is an important issue I need to
> investigate. I am utterly confused about a certain tax
> strategy, so I hope you folks out there can help me out.
> Here is my situation:
>
> I want to save on taxes and that's why I invested in real
> estate. In 2006 I purchased 2 rental properties. I maxed out
> my deductions until I couldn't find any other way to lower
> my taxable income. A lawyer told me to accelerate
> depreciation on my properties, but I didn't want to have to
> pay him to figure out what that means. I imagine that means
> I can increase my depreciation deduction, but how? Anyone
> know what he is talking about?

I think what your accountant was referring to is called cost
segregation. I have done this before for a client who just
bought into a large apartment complex. My cost segregation
was to separate the appliances and plumbing fixtures from
the building itself and depreciation those over 7 years. To
do full, formal cost segregation takes an engineering firm
like the one I was trained by and an analysis of the plans
of the building. They will segregate the heating and air
conditioning systems, the waste water systems and other
structural components that may be separately depreciated.
These studies and the voluminous report are costly and are
best done by the developer of a complex when it is built. I
can refer you to the firm if you wish.

Linda Dorfmont E.A., CFP, CSA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on February 18, 2007, 3:11 am
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> I want to save on taxes and that's why I invested in real
> estate. In 2006 I purchased 2 rental properties. I maxed out
> my deductions until I couldn't find any other way to lower
> my taxable income. A lawyer told me to accelerate
> depreciation on my properties, but I didn't want to have to
> pay him to figure out what that means. I imagine that means
> I can increase my depreciation deduction, but how? Anyone
> know what he is talking about?

Accelerated depreciation means that you take the same amount
of depreciation, but take more in early years and less in
later years. Check with your tax preparer for more
information.

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Benjamin Yazersky CPA on February 18, 2007, 3:11 am
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> Hello all, my name is Andrew Bitler. I am a small real
> estate investor with big problems. I recently joined a bunch
> of forums because there is an important issue I need to
> investigate. I am utterly confused about a certain tax
> strategy, so I hope you folks out there can help me out.
> Here is my situation:
>
> I want to save on taxes and that's why I invested in real
> estate. In 2006 I purchased 2 rental properties. I maxed out
> my deductions until I couldn't find any other way to lower
> my taxable income. A lawyer told me to accelerate
> depreciation on my properties, but I didn't want to have to
> pay him to figure out what that means. I imagine that means
> I can increase my depreciation deduction, but how? Anyone
> know what he is talking about?

depreciation on real property is pretty much cut & dry
depending on whether it is residential or not determines
which depreciation schedule to use accelerated depreciation
on real property is something that is in the past -it
existed once upon a time

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on February 18, 2007, 3:11 am
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Andrew_Bitler wrote:

> Hello all, my name is Andrew Bitler. I am a small real
> estate investor with big problems. I recently joined a bunch
> of forums because there is an important issue I need to
> investigate. I am utterly confused about a certain tax
> strategy, so I hope you folks out there can help me out.
> Here is my situation:
>
> I want to save on taxes and that's why I invested in real
> estate. In 2006 I purchased 2 rental properties. I maxed out
> my deductions until I couldn't find any other way to lower
> my taxable income. A lawyer told me to accelerate
> depreciation on my properties, but I didn't want to have to
> pay him to figure out what that means. I imagine that means
> I can increase my depreciation deduction, but how? Anyone
> know what he is talking about?

A lawyer told you that, eh?

Well, steer clear of that fellow, for real estate is
depreciated on straight line method over 27.5 years. Period.
There is no acceleration like there used to be.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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