Updated about 4 years ago on . Most recent reply
Cost Segregation with a Partner/Multiple investors
Can someone speak to cost segregation and the possibility of this being done with a partner or multiple investors? I see the obvious benefits of cost segregation but my wife and I will likely be in full time jobs the next few years where becoming a real estate professional is not attainable.
Is there a way to leverage this with partnership or investment groups? If so what does this look like?
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#4 New Member Introductions Contributor
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@Mason Haley As long as you and your wife do not have REP status AND you materially participate in the real estate business, you can only deduct up to $25,000 in passive losses against your W2 income. The deduction does phase out based on your MAGI - 50% if your MAGI is greater than $100,000 and 0% above $150,000. Your remaining losses are then carried forward. If you do not materially participate, then your passive losses could only offset passive income. If your partners have REP status, they would be able to offset their real estate losses against active income. For cost segregation, it can definitely be done with partners/multiple investors. My team has helped multiple clients through this situation, so if you have any questions, I'm more than happy to help!