Most of us want to pay Uncle Sam as little as we can legally and ethically get away with every year. Fortunately for us, there are a number of tools we have in our bag as real estate investors to whittle down our bill. Cost segregation is one of those tools. My guest today is Mark Gross of Cost Segregations Services Incorporated. We discuss the basics of cost segregation studies, how they benefit investors, and how you may be able to take advantage.

Key Points:

Cost segregation vs straight line depreciation (0:54)

Partial Asset Dispositions (4:36)

Tangible Property Regulations (5:49)

Changes from the CARES Act that affect prior tax returns (8:29)

The cost of cost segregation studies (10:29)

Cost segregation for passive investors versus active investors (12:38)

What does the process look like, from engagement to tax benefit? (14:07)

Bonus depreciation for new owners (17:38)

Residual benefits for long-time owners (19:25)

Who cost segregation studies don’t work for (21:49)

Cost segregation on new construction versus a rehab (23:25)

Resources:

Email Mark [email protected]

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