Accelerated Depreciation

Also, if we think there's not going to be enough value, we're not going to encourage you to do it.

We say, okay, The one thing I don't want to do is charge you $3,000 in the fee and you're saving $4,000.

That's not meaningful, right? So I would tell you, probably don't want to do that.

And then we can give you some other strategic things, a way of looking at your properties.

The other thing I would tell people to do is if they own properties, look at your depreciation schedule.

This is the biggest thing I found in the past year that is just, it blows my mind.

What happens is that You have a differential between the building value and the land value on a depreciation schedule.

A lot of people have never seen their schedule because it's something that the CPA holds.

But if you have more allocated to land, you can't depreciate land.

And so that's never going to be something that you can claim as depreciation expense.

I found one property.

This was a vacation home property in Colorado.

The land was overvalued by $800,000.

Good grief.

Owner had never seen it because he owned it for a couple of years.

I said, show me the schedule because I've run into this problem so often that that's the first thing I check.

And so he didn't know how that got there.

He'd gone to a new CPA.

Nobody knew where that came from.

So we fixed it.

We were doing a cost seg on the property anyway.

So that additional money that should have been in building, we got to change the allocation between land and building changed.

And so that value went into the building.

And then that's what we could look at doing the cost seg on that new value.

That's called a change of accounting method form.