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Subject:  Re: Segmenting Assets to Accelerate Depreciation Date:  4/9/2008  6:17 PM
Author:  RealTaxTips Number:  100163 of 127753

Thank you very much, you certainly know what you are talking about. I guess I should have been clearer in asking my question.

I understand that for a residential rental worth less than $1M, it is not worth the cost and hassle of a cost segregation study.

Say you have a SFH worth $500,000, and it's brand new, and you happen to know the costs of some of the assets within the home (carpet, stove, washer, dryer, refrigerator, fence, other 5 & 15 year assets etc...)

And assume you do your own taxes. Would you go through the trouble of separating them out and depreciating them separately? There are websites that are free and make it easy to do, I'm wondering why not everyone is using them.

You are completely right in your PS comment. Do you think the IRS comes down on those heavily for property worth less than $1M.

From my understanding of what you are saying, say property A has a $2k washer, and property B has a $1K washer. This is an issue since you are trading down - but what if property A had a $1k dryer and property B had a $3k dryer? Wouldn't the common assets just offset each other since they are like-kind.

This is a weird example, I was just trying to illustrate. I guess I am generally assuming that you will always be trading up in a 1031...

I'd love to hear your thoughts.
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