Cost Segregation Depreciation Uses

[Dennis Tierney]

We came up with a couple of uses for accelerated depreciation by cost segregation. We had a failed attempt at 1031 exchange last year but were able to eventually buy an apartment building so the losses generated by the cost seg. study will cover the capital gains we would have had to pay. We have several apartments in a self directed IRA and in a couple of yrs. will be bumping into mandatory RMDs. I was thinking of trying to roll one or more out of the IRA and using the losses from cost seg. to cover the taxes doing the roll out would incur. Anybody had experience doing that?

[Ashish Acharya]

Originally posted by @Yonah Weiss:

@Bernard Reisz might have some experience in that area. Not sure if you can use the losses from a cost seg to offset your taxes incurred by rolling out of the IRA

 If he qualifies as RE pro, which he should because he looks like he is retired, he can offset an other income with the loss generated via is apartments after Cost Seg

If not, his loss are suspended as every-other passive losses.