Cost Segregation study and lump sum depreciation

[Jinhee Hann]

Does everyone know about cost segregation?

Thank almost hired a company at a cost of $4k, to do a cost seg study to offset my taxes. Then a cpa told me that that’s not necessary if I bought the property the same year that I’m doing taxes for. I can just provide the list of all the inventory and improvements that I made for the property and depreciate everything in lump sum. Without doing the cost seg study. That’s what I did and it created a huge loss on paper to offset my taxable income. This was great since 2020 (which is the tax year that I just filed my taxes in October this year AND when I bought the property) was the highest income grossing year for me and I needed as much write off as possible. Just FYI. Talk to your cpa for details 

[Yonah Weiss]

@Jinhee Hann I think what @Sarah Waterman was saying is that you CAN depreciate the purchase (and allocate that with cost segregation), but what you were mentioning your cpa did was for inventory and improvements...NOT cost segregation study.