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Updated over 5 years ago on .
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Cost Segregation Study for SFRs
Has anyone ever done a cost segregation study for a portfolio of SFRs? Is it worth it, and if so, in what circumstances?
I will likely be making more in the next 5 years than I will after that as I plan to partially retire and live mainly off of rental income in the next 3 to 5 years. I make good income now that I want to try to maximize my tax deductions as much as possible while I have high income. Any guidance would be appreciated!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
This question has been frequently discussed on this forum if you search it.
Short story: real cost seg studies (with a site visit and an engineer's report) on SFRs are usually not cost-effective, unless you have a large portfolio concentrated in one area, and the cost seg company will give you a package deal.
The other option is a DIY software from companies like KPMG.
Most importantly: before investing in cost seg, make sure you can benefit from extra deductions, considering your mention of high income. Your currently allowable deductions could be limited.