Cost Segregation Study

2 Replies

I am closing on my first 2 family house in NJ this week. I am excited. I will be living in one unit and renting the other. The total purchase is around $280k.

Should I do a cost-segregation study, so I can deduct depreciation faster? and any idea what range a cost-segregation study would cost?

@Eric Fernando Congrats on the new property! You could definitely look into it, but being totally honest there may not be that much benefit in a property that size. It really depends on what the allocation between land value and improvement value is on the property. Feel free to PM me.

@Paul Caputo - I have a portfolio of rentals in 3 different states. I am thinking about doing cost segregatuon study on the entire portfolio as I recently heard about the next tax law where it not only allows cost seg for new purchases but allows ‘catch up’ on all your prior acquistion before Dec 2017 when the new tax law went into effect. The size of the entire portfolio is about 2mil consisting of sfrs, condo and townhomes

Let me know what your thoughts are