Cost Segregation Study Experience

[Colby Wartman]

I currenntly have 5 properties and am needing to cut down on tax liabilities for this year. I have never done a cost seg for any properties up to this point and understand the fundamentals of the process. However, I would like to know a few things from people that are more experienced:

1. Who do you traditionally use? Is there any benefit from local companies?

2. In your experience, was the study pricing justified for how much tax savings you got?

3. I have heard that there are a couple different options. 1. Doing it by yourself with minimal assistance. 2. The hybrid method. 3. Having a company do the entire process. What have you found works best?

Again I have never done this and only have minimal understanding of the process! Any and all help would be greatly appreciated, thanks!

[Basit Siddiqi]

What a cost segregation study does is it analyzes a property and breaks out the depreciable basis of the property to more than just building and land.
It will try to identify assets that are eligible for 5, 7 or 15 year asset lifes which would be eligible for bonus depreciation.

Whether a cost segregation study will help you depends on your tax situation.
High level, it will help you in two situations
1) Your rental property is active and you can offset the losses against other forms of income.
2) You have a lot of passive income and you want to increase your passive losses to offset your passive income.

Best of luck