Has anybody used Kinder Spankneberg & Co for cost segregation? My CPA recommended them but their quote is about $1,500 higher than recostseg.

Thanks for starting this thread! I'm in a similar situation - just closed on my first duplex last month and my CPA mentioned cost segregation but I wasn't sure where to start. Reading through everyone's experiences has been super helpful. One thing I'm curious about - for those who've done cost segregation studies, did you do them in the first year of ownership or can you go back and do them later? I'm wondering if I should rush to get one done before filing this year's taxes or if I have more flexibility on timing. Also seeing a lot of mixed opinions on company selection. Sounds like the engineering-based approach and audit support are key factors to consider over just price. The potential tax savings everyone is mentioning definitely seem to justify paying for quality work!

I'm actually preparing taxes for my cousin who's in almost the same situation (F1 with pending I-485). Does anyone know if using a tax service like H&R Block is worth it for this kind of complicated situation? Or should I just use something like TurboTax?

Just went through this exact situation last year! As someone who had F1 status with pending I-485 and received foreign tuition payments, I can confirm what others have said - you don't need to report the $40k tuition payment as income since it went directly to your university. However, there are a couple of additional things to keep in mind with your mixed immigration status: 1. Make sure you're filing as a resident alien for tax purposes if you meet the substantial presence test, even though you're still on F1 visa. Your pending I-485 doesn't automatically make you a tax resident, but your physical presence might. 2. Keep detailed records of the wire transfer and your I-20 form showing the tuition amount. If USCIS asks for tax compliance documentation during your I-485 process, having clear proof that this was educational funding (not unreported income) will be important. 3. Double-check if your parents sent any additional money for living expenses directly to you - that would still be considered a gift and not taxable, but good to track separately from tuition payments. The key thing is that since the money never touched your accounts and went straight to an educational institution using proper F1 documentation, it's clearly not income to you. Good luck with both your taxes and your green card application!

The form you need is Form 4797 Part III for this situation. You'll report the business percentage of the car, the sale price, and your adjusted basis. The key is calculating that adjusted basis correctly by subtracting all the depreciation you took (or were deemed to have taken with standard mileage). The IRS Publication 463 has charts showing the depreciation portion of the standard mileage rate for each year. For example, it was 26 cents per mile in 2022, 25 cents in 2021, etc. Multiply your business miles each year by that year's rate to get your total depreciation.

This is a perfect example of why keeping detailed records is so important for rideshare drivers! What you're experiencing is completely normal but definitely confusing the first time you encounter it. The key insight that others have mentioned is that the standard mileage rate isn't just covering gas and maintenance - it includes depreciation too. So every year you claimed those business miles, the IRS was essentially saying "okay, we'll let you deduct this amount, but we're also going to reduce what you 'own' in this car by the depreciation portion." One tip for the future: if you do rideshare driving again, consider keeping a simple spreadsheet tracking your total business miles each year and the depreciation rates. That way when you eventually sell your next vehicle, you won't be surprised by the tax implications. You can find the historical depreciation rates in IRS Publication 463. Also, remember this "gain" will likely be taxed as ordinary income (depreciation recapture) rather than capital gains, so factor that into your tax planning!

One thing nobody's mentioned - be careful about how this affects your estimated tax payments! If you were paying quarterly estimated taxes as a sole prop and then switched to S-Corp mid-year, the calculation gets tricky. When I converted, I underpaid my estimated taxes and got hit with a penalty. Make sure your accountant helps you figure out the right amounts for each business structure during the respective periods.

You're absolutely right to be concerned about that second accountant's advice. Filing S-Corp returns for periods when you weren't actually operating as an S-Corp is risky and could cause serious issues down the road. The incorporation date error needs to be corrected properly. Here's what I'd recommend: 1. File Form 8822-B to correct the business information with the IRS. Include a detailed letter explaining the error and attach documentation showing your actual incorporation date. 2. For 2024 taxes, file as a sole proprietor (Schedule C) for January through June, then file a short-year S-Corp return (Form 1120-S) for July through December when you were actually operating as an S-Corp. 3. Don't worry about "drawing attention" to yourself - correcting errors is normal and expected. The IRS processes these corrections regularly. The key issue is that S-Corp status comes with specific requirements like taking reasonable salary, maintaining separate accounts, and following corporate formalities. If you claim S-Corp status retroactively for periods when you weren't meeting these requirements, you could lose your liability protection and face problems in an audit. Better to take a few extra steps now to fix this properly than to deal with much bigger headaches later. Find a new accountant who understands the importance of getting this right!

One big mistake I made with my business vehicle - I didn't take photos of the odometer on January 1st and December 31st each year! IRS auditor flagged this and I had a nightmare proving my mileage. Also get a good app to track trips - I use MileIQ and it's saved me tons of time.

Great discussion everyone! As someone who went through this exact decision last year with my Tesla Model Y for my consulting business, I wanted to add a few practical tips: 1. **Documentation is everything** - I use a simple spreadsheet with columns for date, starting odometer, ending odometer, destination, and business purpose. Takes 30 seconds per trip but saved me during a recent audit. 2. **The business use percentage calculation** - Don't just estimate! Track for a full month to get an accurate baseline, then use that to project your annual percentage. Mine ended up being 42% which was higher than I initially thought. 3. **Consider the long-term strategy** - I started with actual expenses method because the Tesla's depreciation in year 1 was substantial. But run the numbers both ways - sometimes standard mileage wins, especially in later years when depreciation decreases. 4. **Tesla-specific tip** - Keep all your Supercharging receipts if you go with actual expenses. The app makes this easy, and electricity costs add up faster than you'd think for business driving. Also want to echo what others said about state incentives - I got a $2,000 state rebate that I almost missed because I didn't research it until after purchase. Check your state's energy department website!