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Tax, SDIRAs & Cost Segregation

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Navid A.
  • Rental Property Investor
  • Fayetteville, NC
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81
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BRRR and depreciation upon Refi

Navid A.
  • Rental Property Investor
  • Fayetteville, NC
Posted Nov 25 2019, 06:15

I'm currently reading the "Book on Tax Strategies for the Savvy RE Investor" and it led me to an interesting question.

How does a Refi impact what you can depreciate on your rental property? For example, you buy a property cash for $50K, rehab it for $30K, and refi for $85K. Assuming the land value is only $10K, what amount can you depreciate over the course of 27.5 years? Or would you use cost segregation at that point?

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