Depreciation and House Hacking

[Kevin Brown]

So if I buy a 4plex, put it in an llc and occupy one unit as a tenant paying rent to my llc each month, can I depreciate the entire property?  Or do I need to do a cost segregation study to figure out the value of the unit I occupy and defer depreciating that unit until we eventually move out?

Thanks!

[Aaron Zimmerman]

Im only going to touch on the cost seg study. You need to make sure you're able to utilize the losses if you're going to do the cost seg study. Most people mess up the order of operations. Many people do cost seg and let their cpa know and then are surprised that there's minimal benefit. The best practice is to reach out to your cpa and see if cost seg is beneficial to you. I'd hate to see you waste money for a cost seg that won't deliver current year benefits.