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Updated 14 days ago on .
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Is a cost segregation worth it?
I currently have 4 properties, 2 SFH and 2 duplex, that we have been renting since 2023. Initially these loans were in my personal name, and now as of 3/2025 are now in our LLC where we consolidated into a commercial loan to pull out equity. The initial purchase of these properties in 2023/2024 was 569k. When we consolidated these 4 units, appraisals were done and totaled 725k across the units.
We have not used depreciation yet, only bc we needed to get my wife into the real estate professional role(REP), which was done in 2024.
I have a W-2 job as well as 1099 work that I have not placed into an LLC/Scorp yet(this is coming). We have a decent amount of tax liability for 2024, we had been holding on cost seg, bc of the REP and the status of bonus depreciation in Congress.
We have done some work to the properties, roof and windows in the duplexes, and flooring and basement drainage in the SFH.
I know that with cost seg these can be costly, so I am trying to get a feel for if this is worth it to pull the trigger to reduce our tax liability and maybe even get some return to reinvest. Curious of the thoughts of the brain trust.
Matt
Most Popular Reply
@Matthew Waggoner - study this diagram to find answers to your questions and questions you have yet to think about.
