Cost segregation study

[Stan Koper]

First time owning operating an STR. Have had it since May 2025, and am learning now about the Cost Segregation. Anyone have any recommendations on companies that they've used and are reasonable.

[Jason Malabute]

Before locking in a firm, the better question to ask is whether a cost seg actually moves the needle for you this year. The deduction is powerful, but only if you can use the resulting losses — if your income picture doesn't allow you to absorb them now, they sit and get carried forward as suspended passive losses. A smart first step is asking a cost seg provider for a free estimate so you can see the rough benefit before paying for a full study. The quality of the report also matters because your CPA has to translate it into the return. From there, have your CPA model out the actual tax savings and confirm whether the losses are usable in the current year or pushed to a future one — that way the decision is driven by real numbers rather than the appeal of more depreciation. Every situation is different, so it's worth running this past your own CPA or tax advisor first.