All Forum Posts by: Yonah Weiss

The type of loan you get does not effect your ability to claim depreciation/cost segregation. Important to note, that when doing a cost seg on a house hack, you can only depreciate the portion of the property that is a rental unit. So let's say you bought the duplex for $500k ($250k for each unit) and land value is $100k, $200k would be your depreciable tax basis.

You mentioned the ability to offset your W2 with the losses because this is an STR, (and even though we've discussed this, for the sake of the forum) make sure you meet the material participation requirements and your CPA understands this as well.

 And THIS is where my idea for a dating app comes in - matching high W2 earners with real estate professionals! 😎

Great question @Chris Bell. Lenders 'should' add back depreciation to your income, since it is not a real loss, just on paper. Unfortunately many residential lenders do not know or understand the basic fannie mae lending guidelines. If your lender gives you pushback on this you can try to educate them, but may need to find another one.

Thanks for the mention @Linda Weygant

@Sean Resavy The cost has a lot to do with the type of property and scope of work. Most companies will provide a free upfront proposal, if they are all similar, either go with whomever your tax advisor recommends or which one you feel most comfortable with.

$4500 is not that expensive for a cost seg, based on the market. But again depends on what type of property. If it's a large multifamily or commercial property that would be considered cheap.

Also note that costs have risen (just like everything), so a year or two ago the cost may have been much cheaper than what it is today.

Excellent post @Michael Plaks! I will make sure to share this with many investors I know.

 Thanks so much. Happy to help @Jon Fletcher

 Michael, Because his tax pro might charge a consultation fee to get this answer 😉

I'm not a CPA, but I'll check you :) 

There are some different rules specifically with regards to Short Term Rentals. You do not need to have REPS, as long as the average stay is less than 7 days, and you materially participate in the running of the rental. Either 100+ hours and more time than any other individual, or 500 hours per year.