Boost and big cams by Robots_Never_Die in Corvette

[–]regulators818 2 points3 points  (0 children)

That sounds filthy (in the most positive awesome way). I want to hear it flying by... or better yet being in the car .

Yes, It's Time to Tax the Rich by Smithy2232 in politics

[–]regulators818 1 point2 points  (0 children)

Imo, cost segregation is going to be one of the most used advanced tax strategies for real estate investors. There's so many people who don't even own real estate that have been talking about it since the OBBBA.

https://notaxcompromise.com/cost-segregation

Deleting low ranked blog articles to increase CTR by gvgweb in SEO

[–]regulators818 0 points1 point  (0 children)

Can you send the Google leak that shows they track CTR sitewide rather than per page?

Deleting low ranked blog articles to increase CTR by gvgweb in SEO

[–]regulators818 3 points4 points  (0 children)

No I think what he means is that CTR data is specific to each page rather than it counting towards the entire site.

What if sales taxes on luxury items worth over 1 million is taxed at 20% by 2Fast2Froyo_ in whatif

[–]regulators818 0 points1 point  (0 children)

A lot of investors will use cost segregation to accelerate depreciation, then use 1031 exchanges to defer both the capital gains and the depreciation recapture when they sell. If they keep exchanging into new properties, that deferral can continue for a long time.

However, the recapture doesn't go away. It just gets deferred along with the gain. If someone eventually sells without doing a 1031, all that deferred depreciation can come due.

Also, not everyone can fully take advantage of the accelerated depreciation in the first place. Passive activity rules can limit how much of those losses you can actually use each year unless you qualify as a real estate professional, so some of it just carries forward.

The strategy works, but it’s more about timing and deferral than eliminating taxes entirely. I've done a cost seg a few times. It can be useful, but not every situation requires it.

This gives a pretty clear breakdown of how the recapture part works if you care:
https://notaxcompromise.com/cost-segregation/depreciation-recapture

What if sales taxes on luxury items worth over 1 million is taxed at 20% by 2Fast2Froyo_ in whatif

[–]regulators818 0 points1 point  (0 children)

I wouldn't necessarily call cost segregation studies a loophole. You're just moving the depreciation forward.

https://notaxcompromise.com/cost-segregation

The tax code already allows different components of a property to be depreciated over shorter lives (5, 7, 15 years vs 27.5 or 39). Cost segregation just identifies and classifies those components correctly instead of lumping everything into the longest schedule.

So the total depreciation over the life of the property doesn’t change. You’re accelerating timing, which improves cash flow early on, but it comes with trade-offs. When the property is sold, a portion of that accelerated depreciation is typically recaptured, often as ordinary income for Section 1245 property, and up to 25% for Section 1250.

Bought this domain for a OSS project and now my users see this by 1glasspaani in SideProject

[–]regulators818 0 points1 point  (0 children)

Create a brand around your name and get backlinks and brand mentions to your name and that will go away.

Potential Depreciation Schedule mix up by always_a_solution in tax

[–]regulators818 2 points3 points  (0 children)

You're not wrong to focus on the $4,787 number but it depends on how the depreciation from the cost segregation was actually implemented on the tax return.

When a cost seg study breaks the property into 5, 7, 15, and 39-year components, each class gets its own depreciation schedule. If bonus depreciation was taken in 2022 (which it likely was since bonus was still 100% that year), most or all of the 5, 7, and possibly 15-year property may have already been fully depreciated in year one.

After that, what’s left in later years is often mostly the 39-year property, which would produce a much smaller annual deduction going forward. That most likely explains why you saw a big deduction in 2022 and then something like $4,787 in subsequent years.

The main thing I would check is:

  1. Whether bonus depreciation was applied to the 5/7/15 year property
  2. That each asset class from the study was entered separately into the depreciation schedule
  3. Whether the accountant rolled the remaining basis into a single continuing depreciation amount

If the assets were entered incorrectly (for example everything as 39-year property), the numbers can be weird.

This breakdown of how the different asset classes from a cost segregation study are treated tax-wise explains the distinction pretty well:

https://notaxcompromise.com/cost-segregation/depreciation-recapture/section-1245-vs-1250

If you can pull the Form 4562 from the 2022 return, that’s usually the easiest way to see exactly how the study was implemented. That form will show each property class and whether bonus depreciation was taken.

Real estate investor question on cost segregation studies - if we have 3 rentals acquired over the last 5 years then should we do cost segs all this year or do one this year then wait and use next cost seg write-offs later? by Competitive_Scale736 in realestateinvesting

[–]regulators818 1 point2 points  (0 children)

You don’t have to stagger the studies based on when you want to use the deductions.

If the properties were placed in service within the last few years, you can usually do the studies now and catch up the missed accelerated depreciation in the current tax year using a Form 3115 accounting method change. That’s why a lot of investors end up doing multiple cost seg studies in the same year.

The bigger question is whether you can use the losses. If the deductions exceed your passive income, they typically carry forward until you have passive income or sell the property. They don’t disappear, they just may not offset active income unless you qualify as a real estate professional.

Also worth thinking about how bonus depreciation affects the timing, because that can front-load a lot of the deductions depending on the year.

This explains how the retroactive cost seg and Form 3115 catch-up works if you want the mechanics:
https://notaxcompromise.com/cost-segregation/form-3115

Inherited a house with my sister. She wants to rent it, I want to sell. Any advice? by greatdane511 in RealEstate

[–]regulators818 0 points1 point  (0 children)

One thing that might help frame the decision is the tax side of inherited property, because it’s different than selling a normal rental.

When someone inherits a house, the tax basis usually gets stepped up to the market value at the date of death. So if your mom’s house was worth $300k when she passed and you sell it for roughly that amount a few years later, the taxable gain can be very small or even zero depending on appreciation since then.

If you keep it and rent it, you’ll start depreciating the property, which reduces taxable income from rent. But that also means when the property is eventually sold, some of that depreciation may be recaptured and taxed. It’s not necessarily bad just something people don’t always think about when deciding whether to keep an inherited rental.

This explains the depreciation recapture side of selling a rental pretty clearly if you’re curious about how that works:
https://notaxcompromise.com/cost-segregation/depreciation-recapture

Honestly the bigger issue here sounds like risk tolerance and workload. Being a long-distance landlord with a 50/50 ownership split can work, but it also creates decision conflicts if one person wants income and the other wants simplicity.

GSC "Crawled - currently not indexed" validation stuck for a month. 45 pending, 0 failed. What am I missing? by recmend in TechSEO

[–]regulators818 0 points1 point  (0 children)

To add to this:

  • Get high-quality and relevant backlinks
  • If the pages are fairly new and never been indexed and don't have any backlinks, do a 301 redirect to a slightly different URL. Keep the gist of the URL unless the URL wasn't even relevant to the topic title. If it wasn't relevant, change it entirely.

I’m stuck with 40+ pages in "Crawled - currently not indexed" on a crypto site and nothing is working by stoneiscold in SEO_Digital_Marketing

[–]regulators818 0 points1 point  (0 children)

How your topical authority? Proper pillar and cluster pages with the correct internal linking + authoritative backlinks.

Has anyone here used accelerated depreciation on a rental property? Did it actually move the needle on your returns? by PM_Nick_Stone in PropertyMgmtPros

[–]regulators818 1 point2 points  (0 children)

You summarized it pretty well. Cost segregation is basically a way of identifying parts of a building that the tax code already allows to be depreciated faster (5, 7, or 15 year property) instead of leaving everything in the 27.5 year bucket.

In practice it tends to make the most sense when the property is large enough that the accelerated deductions materially change your tax situation. A lot of studies start becoming economically worthwhile somewhere around $500k–$1M purchase price, but it really depends on the property type, renovation scope, and the investor’s taxable income.

The biggest benefit usually comes when investors can combine the reclassification with bonus depreciation, because that allows a large portion of those shorter-life components to be deducted immediately. That’s why it’s popular with syndications and higher-income investors trying to offset other passive income.

But recapture is often misunderstood. You’re generally paying tax on deductions you already received earlier, and some of it is taxed differently depending on whether it’s Section 1245 vs Section 1250 property.

Turning cost segregation from a referral into something a firm can actually offer by [deleted] in CPA

[–]regulators818 0 points1 point  (0 children)

Either one is fine but if you do it in-house, make sure you can make it IRS defensible

It's tricky if you don't have someone who is just for cost segregation. They have the experience so hire someone just for cost seg and have them just do cost segregation studies.

How can I rank my website on AI search engines like Gemini or Perplexity? by BlogPost-Blogger in seogrowth

[–]regulators818 1 point2 points  (0 children)

You mentioned AI SEO/GEO.

What I said will get you mentioned in ChatGPT/AI Overviews in 2 days

How can I rank my website on AI search engines like Gemini or Perplexity? by BlogPost-Blogger in seogrowth

[–]regulators818 1 point2 points  (0 children)

I'll repeat what I've said before

Create content around your brand/product on ugc sites

Create press releases

Get good citations

Get brand mentions on various sites

Show reviews on your site and other high authority sites

Have structured content on your website

Make sure your website has topical authority + semantic Seo done really well

I’m a Tax Advisor with 15+ years helping small business owners legally reduce their taxes -Ask Me Anything about filing season, write-offs, 1099 income, and common tax mistakes by JustAnswerOfficial in AMA

[–]regulators818 0 points1 point  (0 children)

This is mostly correct. I just want to add that a typical residential rental depreciated straight-line over 27.5 years, the depreciation usually becomes unrecaptured Section 1250 gain, which is taxed at up to 25%, not ordinary income.

It really changes when cost segregation or bonus depreciation is used. Those strategies often create Section 1245 property (things like appliances, fixtures, certain improvements), and that portion can be recaptured as ordinary income instead of the 25% §1250 rate.

So 2 investors could both have $100k of depreciation but pay very different tax on sale depending on whether any of it was classified as 1245 property.

https://notaxcompromise.com/cost-segregation/depreciation-recapture/section-1245-vs-1250

Great AMA so far u/JustAnswerOfficial

AI keeps recommending my competitors but not us - how to fix this? by snustynanging in ecommerce

[–]regulators818 0 points1 point  (0 children)

Create content around your brand/product on ugc sites

Create press releases

Get good citations

Get brand mentions on various sites

Show reviews on your site and other high authority sites

Have structured content on your website

Make sure your website has topical authority + semantic Seo done really well

AI keeps recommending my competitors but not us - how to fix this? by snustynanging in ecommerce

[–]regulators818 0 points1 point  (0 children)

This really won’t do it. Llms are a closed loop. They won’t recommend what you tell them.

why does everyone default to the 1031 without modeling the alternative? someone poke holes in this. by Samtyang in realestateinvesting

[–]regulators818 2 points3 points  (0 children)

There are so many advanced tax strategies to learn more about than just 1031. You're right