Cost Segregation Techniques You Should Apply Today to Reduce Taxes

Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/ii9

I've been watching your videos for years now and finally took the plunge and bought 3 SFRs this year. Being able to use so many of your tips is great! Between cost segs, tax gain harvesting, investing strategies and more I'll pay the lowest taxes I've ever paid while earning the most income. My only regret is not starting at the bottom of the housing crash.

Amazing show guys! Thank you!

I’ve spoken with Erik, he’s very patient and takes the time to answer questions

Amazing content thank you so much for clarifying things in this video.

I'm geeking out on this stuff! Love it! Lots of great ideas!

Thanks for the video. Depreciation recapture wasn’t discussed and is an important topic to consider with cost segs as well as 1031 exchange impacts.

Great video

Clint - loving your videos and the generous sharing. Wish more success to you, your partners and Anderson. You guys deserve it! Q: Am over the MAGI limit from W2 job. Bought 3 rentals 2021. Doing an Amendment for 2021 taxes now to include cost segregation (cleaner approach. Start correctly. Not difficult either). There will be no cash flow benefit to me for years whether I take Bonus depreciation 100% of the 5 year segregated items in 2021 OR spread it over 5 years. However, if I need to change out a carpet or appliance before the end of the 5 year period, and would like to depreciate the new item in say 2023, which is option is better now for the 2021 Amendment: a. Take 100% depreciation today and let it Carry Forward (get it off the books). Simple strategy, maximize benefit although delayed. Any negatives? b Continue partial Depreciation for 5 years and deal with the swap some other way ( Partial Disposition). Seems more complex and work! Unforeseen IRS obstacles? I plan to keep the properties and hopefully pass it down as inheritance. So depreciation recapture is not a factor.

Clint Coons thank you for this video. Great info as always!!!!

This was a great video. Thanks Clint! I'm looking to invest in a real estate syndication this year and the close date is sometime in December. A cost segregation analysis will be performed. Can I delay the depreciation benefit when I do my taxes in 2023 for the 2022 tax year? I don't have any sort of real estate investments currently and my understanding of how to benefit from depreciation is that the amount can be deducted only from the real estate income amount and not towards my regular W2 income (since I am not a real estate professional).

@Clint do you have any recommendations of which CPA firms to use?

What fif you have a rental property that has three apartments in the farm house.then has three old barn buildings and workshops on the 25 acres of land. Can the house with the rentals and the old barn structures be cost seg and used for bonus depreciation?

Hi Clint. Your videos are so awesome! Thank you for posting them! I've got a question I hope you can answer. My scenario..... I bought a vacation condo 18 yrs ago which I rent out most of the year (min 30 day stay). I've been depreciating it over 27.5 yrs and have been able to take advantage of the deductions & depreciation. However, over the last couple of years my salary has way surpassed $150k and as you know the tax code prohibits me now from taking most of my deductions/depreciations. I am not a real estate professional, nor do I want to start doing short-term rentals. Is it worth doing a cost-segregation analysis on the property now? and if so, will I be able to take immediate advantage of the tax savings? I would love to recoup some of the $35k in annual taxes they take out of my paycheck. Thank you in advance. You opinion is so appreciated. Thanks again

This is all fine and dandy but remember the more you cost seg and retire line items with pad, the more you lower your basis and that recapture is gonna be crazy if you sell or do a 1031. TCJA killed the deferral of taxes on any property that isn't real property and cost seg creates more "other property" So, be careful

Yall refer to the ability to apply these losses if you are a real estate professional (Im very clear on that) or it’s a STR investment property. Do you have another video or resource on that STR exemption that would allow me to deduct passive losses from active gains?

I've done cost segregation with Cost Segregation Authority, LLC. They may be experts in cost segregation studies, but did you know that they don't know how to calculate the cost basis? They just use CONTRACTED PURCHASE PRICE! Not capitalizing legal, title insurance, and recording fee etc. I would verify if they got the right cost basis, if not you'll be the one paying the penalties. I had them change it, but haven't heard from them for couple weeks.

If I bought a STR property at the end of the year and put it into service this year and did a cost segregation this year as well, how many days do I need to rent the property this year to be able to take the full 100% bonus depreciation deduction?

Are the "retired" assets expensed or do they become a capital loss?

If you have a loss after applying all the catch-up depreciation from a cost segregation, can that be applied to excess capital gain on sale of a primary residence, or does it carry forward to passive income in the following year?