Although it is usually to the investor's benefit to do a cost segregation study the first year of owership, properties that have been owned for longer than one year can also take advantage of the tax benefits and cash flow available with cost segregation.The amount of depreciation can vary between 25% to 50% of what you paid for the property mimus land with the 100% Bonus Depreciation. 

.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

If you did it in 2025 but didn’t meet REP/material participation, a lot of that loss could get trapped as passive.Caveat: bonus depreciation phase-downOne thing to keep in mind is that bonus depreciation is phasing down.

You needed to sell before Jan 2025 to benefit from this rule.Right now, you owe capital gain taxes, unless you do a 1031 exchange or implement some other tax deferral strategy. 

Not advertising a deal, just trying to understand what “market” looks like.Hypothetical (but based on a real situation):- Location: Central Los Angeles, Jefferson Park–type area- Asset: Existing 4-unit multifamily on a single parcel- Context: Within walking distance (~0.5 miles) of an E Line / K Line rail station, so it appears to fall into a transit-oriented development (TOD) pocket that should benefit from SB 79 upzoning (higher minimum density / height / FAR if standards are met)- Ownership: Held in a family trust tied to a probate / conservatorship, with a court-supervised mandate to (a) preserve the asset and (b) use it to support an elderly beneficiaryThe family side can realistically contribute **land only**; they don’t have the balance sheet or cash to run a full entitlement + construction process.

Whether this is a benefit (i.e., additional deductions) is case dependent, but segregation typically provides benefit compared to not segregating.You can generally apply bonus depreciation, but the phase-outs apply (don't seem applicable here given the years placed in service).Tax positioning is also relevant here.

https://www.cnbc.com/2025/11/13/foreclosures-rise-october-ho...Foreclosure starts, which are the initial phase of the process, rose 6% for the month and were 20% higher than the year before.  

Not all units will be dropped at once, they are being phased 10-12 at a time over a couple years.A couple of initial questions:1.

I would suggest you read "Multifamily Millionaire Vol 1 & II" to get a solid foundation of the benefits of each phase.

It really depends on what the LLC documents say.It depends on if the LLC is in a growth phase and its members argue tha the cash would be in better hands in the LLC so the business can grow.Best of luck!