Cost Segregation to advance your depreciation payments
Hello BP members. I just discovered a new way to leverage your money and current assets to purchase other real estate and am wondering if its too good to be true and what is the catch. What are your thoughts on Cost Segregation to speed up depreciation payments? My first impression of it is why not?! A dollar today is more than a dollar tomorrow and as long as you don't sell the property in 5 years or less than how can it hurt, right? I'm new to this trick so any thoughts would be greatly appreciated.
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- CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg
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@Nicole Duran Cost seg is a very powerful tool. Like all other tools, it has its proper place. For those investors that are positioned to benefit from it - it's a "no-brainer." Sometimes, it's over-promoted and implemented for those that derive no benefit from it.
There's lots of info about this scattered throughout BP, but if you'd like to get the low-down and get a solid foundation in cost seg, check out the this link to BP Marketplace: https://www.biggerpockets.com/forums/521/topics/686210-want-to-learn-how-to-lower-your-taxes?page=1#p4053916