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Everything you need to help you launch your new business entity from business entity selection to multiple-entity business structures.
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Everything you need to help you launch your new business entity from business entity selection to multiple-entity business structures.
Designed for rental property owners where WCG CPAs & Advisors supports you as your real estate CPA.
Everything you need from tax return preparation for your small business to your rental to your corporation is here.
WCG’s primary objective is to help you to feel comfortable about engaging with us
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Cost segregation or costseg as the cool kids say allows you accelerate depreciation (and therefore lower taxes and increase cash) on real estate. With a cost segregation report or a cost segregation study (CSS), all the bricks are figuratively torn down and put into different piles. Some piles are eligible for instant depreciation through bonus or possibly Section 179, and the remaining pile might revert to the 27.5- or 39.0-year typical rental or business use depreciation schedule.
Technically and with full-on geek-speak, cost segregation separates property elements that are “dedicated, decorative or removable” from those that are “necessary and ordinary for operation and maintenance of the building.” These piles are called asset classes, and they are maintained separately within your property’s depreciation schedule. Without cost segregation, your fixed asset listing (aka depreciation schedule) for real estate or a rental property would contain-
We sometimes tack acquisition costs onto the building directly, however we usually list them as a separate asset for breadcrumbs or legacy purposes. When a cost segregation report is implemented into your tax return, the Building asset above is chopped up typically into four new assets-
From there, and with the help of bonus depreciation and in some cases Section 179 expensing, you compress the multiple years into one. Yay! Whether this accelerated rental property depreciation yields a tax deduction / tax benefit and therefore increased cash flow (an improved IRR) is contingent on three general things-
Or some combination of the above. Ok, cool, right? How do we get this going? As stated above, CostSegEZ is WCG’s preferred provider of cost segregation reports. According to their website,
Cost Seg EZ is a web-based tool that helps real estate investors identify cost segregation opportunities and maximize their tax savings. Our tool is based on detailed models, 12+ years of experience, and over 1,000 cost segregation studies completed, which informs our calculations and allows us to identify the types of assets that can be segregated and accurately estimate the costs associated with those assets. Simply input information about your property and generate a cost segregation report in just a few simple steps. It’s that easy to unlock the power of cost segregation with Cost Seg EZ.
Their cost structure is super simple (as of January 25, 2025)-
Cost segregation studies used to be for the rich and shameless with some reports being several thousands of dollars. While those still exist and are even needed at times, you can see that is not the case with CostSegEZ. Sure, there are other do-it-yourself costseg providers, but WCG CPAs & Advisors has worked with CostSegEZ multiple times, and we like their approach and customer support. Most real estate investors in the single-family home or small apartment building space only need a simple report.
Keep in mind that CostSegEZ and their competitors are considered do-it-yourself cost segregation reports. You are the doing the site visit. You are collecting data. You are typing that data into a model. As such, you can mess it up badly. Prior deprecation already taken and improvements seem to be the frequent things that trip people up. So, in any garbage in garbage out scenario (think QuickBooks), you might need guidance on the inputs.
Cost segregation is a wonderful tool and doesn’t cost a bunch of money to implement. A win-win. All the flavor with no calories. Wait! There’s more… should you benefit from a cost segregation study and the related big tax deduction, then perhaps pairing this with a Roth conversion on your traditional IRA makes sense as well.
Learn about important tax deadlines, document checklists and due dates, and other essential tax return information.
Jason Watson, CPA is a Partner and the CEO of WCG CPAs & Advisors, a boutique consultation and tax preparation CPA firm located in Colorado, and is the author of Taxpayer’s Comprehensive Guide on LLC’s and S Corps and I Just Got a Rental, What Do I Do? which are available online and from mostly average retailers.
With state apportionment and tax return preparation, there are two issues at play- apportionment itself, and then state tax return
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Tax planning season is here! Let's schedule a time to review tax reduction strategies and generate a mock tax return.
Tired of maintaining your own books? Seems like a chore to offload?
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The tax advisors, business consultants and rental property experts at WCG CPAs & Advisors are not salespeople; we are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide within our ethical guidelines and your risk profiles.
We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. As Chris Rock says, just because you can drive your car with your feet doesn’t make it a good idea. In other words, let’s not automatically convert “you can” into “you must.”
Let’s chat so you can be smart about it.
We typically schedule a 20-minute complimentary quick chat with one of our Partners or our amazing Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax strategy and planning? Rental property support?
Everything you need to help you launch your new business entity from business entity selection to multiple-entity business structures.
Designed for rental property owners where WCG CPAs & Advisors supports you as your real estate CPA.
Everything you need from tax return preparation for your small business to your rental to your corporation is here.
WCG’s primary objective is to help you to feel comfortable about engaging with us