Cost segregation study recommendations

[David Sam]

Hi, I bought my first investment property ( new construction  SFM) few months back. I hear that cost segregation study would be beneficial.  The property is <400k so not sure if it us beneficial for me.  If so, any recommendations please. How much would it cost (ballpark) for the study?  Does it need to be completed before end of the year to use it when I do taxes in April 2025? 

Thanks!

David

[Basit Siddiqi]

Talk to an accountant prior to doing the cost segregation study.

You want to discuss whether it will be beneficial or not.

In general real estate is considered passive which means that it can't be used to offset other forms of income such as wages, interest, dividends, capital gains, etc.

However, there are some exceptions where the real estate loss can offset these types of income.

best of luck.