Cost Seg Building

A Blog About Tax Savings for Building Owners

Category: Real Estate Investors

REALTORS Close More Deals and Earn More Money with Cost Segregation

September 26, 2024 /

REALTORS and Brokers who work with real estate investors should look at adding cost segregation as a service that you and/or your firm offers. It’s a fantastic service for your clients. (Here’s a 12 minute explanation how REALTORS can implement cost segregation into their business today). You’re going to make a lot more in referral fees from cost segregation than you do with your affiliated services for home warranties or insurance. You can earn 10% of the fee. If the study costs $2,500, that’s $250 for you just for referring us. You don’t have to be an expert. Let us handle it. We’ll run with it and pay you when the study is finished and we’ve been paid by the client.

Connect with me and let’s discuss. I work all over the county. I’m also a licensed REALTOR and have been since 2003. I’ve been a broker since 2007. I don’t do much for transactions any longer as my time and commitment is with cost segregation. So I’m here to be your partner. I know how hard you work and the value you try to deliver to your clients. This can and will help.

Reach out to me on LinkedIn.

John Murphy CSSI

Cost Segregation for Real Estate Carolinas Real Estate Investors

December 31, 2023 /

Real estate investors who are buying and holding long term and mid term rental homes should look at doing cost segregation to saving money on income taxes. I do a lot of studies for real estate investors across the country. We are doing a number of them these days for investors in the Upstate of South Carolina as well as in the state of North Carolina. Upstate CREIA and Carolinas Real Estate Investors Assocation are two outstanding investor associations.

If your property has a cost basis of around $200,000 or more and if you are planning to hold the property for at least another 3 years, it’s highly likely you will stand to benefit from doing a cost segregation study.

The costs will generally range from about $2,200 – $3,500 depending up the size and cost basis of your property and whether or not you’ll need to file an IRS Change of Accounting form 3115. The 3115 form is used to let the IRS know you’re moving from straight line to accelerated depreciation. It’s used all the time. In fact I think we draft about a 1,000 of these each year.

But if you own a property, you might end up saving $5,000 – $10,000 after paying for the cost of the study. This works if you’re profitable and having to pay taxes on your rental income, or if you are considered a full time real estate professional. If your expenses and standard depreciation already wipe out your income, then doing a cost segregation study probably doesn’t make sense to do.

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